20 Clacton Road London E17 8AR LON/00BH/OAF/2026/0004
DECISION
The premium to be paid by the applicants to the respondent missing landlord for the freehold of the Property is £75 (seventy five pounds). The Tribunal approves this figure. The Tribunal approves the form of transfer filed. The applicants’ costs are to be deducted from this premium figure but, the applicants’ unpaid rent up to the AVD are to be added to this premium figure. Introduction[1]This case concerns an application made under Section 27 of the Leasehold Reform Act 1967 (“the Act”) for a transfer of the freehold of the Property. This determination is of the premium to be paid by the applicant leaseholders to the freeholder of the Property. The relevant legal provisions are set out in the Appendix to this decision. The three leaseholders are the applicants.[2]The key lease terms for this house are: The grant of a term for 999 years from 29 September 1958 at a fixed ground rent of £5.25 pa., 932.31 years unexpired. The leasehold title is registered with HM Land Registry under EGL21145.[3]The claim issue date and the valuation date for this application at County Court to vest the freehold jointly in the leaseholder applicants, is taken as 6 June 2025.[4]The Order for application M01ED65, issued 18 August 2025 (later dated 18 November 2025) by the County Court at Edmonton through Deputy District Judge Hughes, referred to the respondent’s freehold as having been vested jointly in the three applicants, in accordance with section 26 and 27 of the Act.[5]The Tribunal’s jurisdiction is derived from the vesting order issued by the Court. The Tribunal considered the issue on the papers submitted by the applicants, without a hearing. The Tribunal was required to determine the premium and approve the form of transfer. Statutory basis of valuation[6]Section 9 to the Act provides that the price to be paid by the purchaser for of the freehold interest shall be the aggregate of the value of the freeholder's interest and compensation for any other loss. No payment is made for the freeholder’s share of any marriage value arising where the enfranchisement arose from one of the exceptions set out under S.1A of the Act. These do not apply here.[7]It is taken that the transfer qualifies as an enfranchisement made under Section 9(1A) of the Act because the rateable value of the Property as at April 1990 was not more than £500. Therefore the provisions of Section 9A which take account of compensation by the tenant for the landlord’s loss of marriage value, do not apply to this transfer.[8]The value of the freehold interest is the amount which, at the valuation date, that interest might be expected to realise if sold in the open market subject to the tenancy by a willing seller (with the nominee purchaser, or a tenant of premises within the specified premises or an owner of an interest in the premises, not buying or seeking to buy) on the assumption that the tenant has no rights under the Act either to acquire the freehold interest or to acquire a new lease. Applicants’ Case[9]The applicants provided an extremely comprehensive valuation report dated 26 March 2026 by Richard Stacey BA (Hons) PGDipSurv, MRICS Registered Valuer, the “Valuation Report”. The Report contains a formal Statement of Truth confirming that in so far as the facts stated in the report are within his own knowledge, that he believes them to be true and includes a statement of compliance confirming that they understand their duty to this Tribunal.[10]Having considered the contents of the Valuation Report and the opinions expressed the Tribunal is satisfied that the method adopted is appropriate to determine the enfranchisement price for the Property. The Tribunal accepts the description of the property and its location as stated in the Valuation Report.[11]From the details of the exterior and interior of the Property included in the Valuation Report the Tribunal did not consider it necessary or proportionate to carry out an inspection of the Property. Valuation[12]The Property is very modest Victorian house, on two levels, no basement level. The interior layout is: Ground floor; living room, kitchen/diner, back addition bathroom/wc. First floor, two bedrooms. It is of traditional construction. Rendered brick walls external walls, a tiled double pitched main roof and transverse double pitched back addition roof. The Property dates from the Victorian period. There was a small front yard, with a modest rear garden. All mains services are available. There are on road parking restrictions. The GIA is reportedly some 62m2.[13]It is in a long established residential area of LB Waltham Forest. The Property is within a terrace of similar homes and is surrounded by the same type age and size of houses. They are largely not converted into flats, because of the small initial floor area.[14]The Valuer confirmed that the property was valued as if in repair, (which it so appeared to be) but that that there were no improvements (even with the double glazed plastic framed windows for example), any additional value of which, should be ignored. Otherwise the Property is valued as it stood at the AVD.[15]The Valuation Report contains considerable detail on recent sales of houses in the locality including HMLR confirmations of each transaction. Whilst such thoroughness is normally very welcome to the Tribunal, here it is unnecessary. The extremely long reversion being well over 900 years means that the only value lies in the loss of the right to receive the term income.[16]The value of the landlord's interest in the house, the Property is therefore represented first by the capitalised value of the ground rent receivable under the lease. That income stream is capitalised in the Report at 7 percent which the Tribunal accepts is appropriate in this case, being a very low fixed income for the remaining term. The reversion to the 5o year assumed lease is far too distant to contain any value, even more so the final reversion to the freeholder, both elements being valued at NIL, a conclusion the Tribunal agrees with. The site is fully developed as it stands and has not additional value potential.[17]The Tribunal is content with the valuations of the interest here as presented in the Valuation Report for each element. In view of this the Tribunal does not provide its own valuation.[18]The premium to be paid by the applicants to the respondent missing landlord for the freehold of the Property is £75 (seventy five pounds). The Tribunal approves this figure. The Tribunal approves the form of transfer filed.[19]The applicants’ costs are to be deducted from this premium figure and the applicant’s unpaid rent up to the AVD, are to be added to this premium figure. This matter is now passed back to the applicants’ representatives for the Court delegated conveyancer to make payment of net monies due and complete registration. Name: Neil Martindale FRICS Date: 1 June 2026 Appendix Leasehold Reform Act 1967 Section 27 Enfranchisement where landlord cannot be found(1) Where a tenant of a house having a right under this Part of this Act to acquire the freehold is prevented from giving notice of his desire to have the freehold because the person to be served with the notice cannot be found, or his identity cannot be ascertained, then on an application made by the tenant the court may, subject to and in accordance with the provisions of this section, make such order as the court thinks fit with a view to the house and premises being vested in him, his executors, administrators or assigns for the like estate and on the like terms (so far as the circumstances permit) as if he had at the date of his application to the court given notice of his desire to have the freehold.(2) Before making any such order the court may require the applicant to take such further steps by way of advertisement or otherwise as the court thinks proper for the purpose of tracing the landlord; and if after an application is made to the court and before the house and premises are vested in pursuance of the application the landlord is traced, then no further proceedings shall be taken with a view to the house and premises being so vested, but subject to subsection (7) below— (a) the rights and obligations of all parties shall be determined as if the applicant had, at the date of the application, duly given notice of his desire to have the freehold; and (b) the court may give such directions as the court thinks fit as to the steps to be taken for giving effect to those rights and obligations, including directions modifying or dispensing with any of the requirements of this Act or of regulations made under this Act.(3) Where a house and premises are to be vested in a person in pursuance of an application under this section, then on his paying into court the appropriate sum there shall be executed by such person as the court may designate a conveyance in a form approved by the court and containing such provisions as may be so approved for the purpose of giving effect so far as possible to the requirements of section 10 above; and that conveyance shall be effective to vest in the person to whom the conveyance is made the property expressed to be conveyed, subject as and in the manner in which it is expressed to be conveyed.(4) For the purpose of any conveyance to be executed in accordance with subsection (3) above, any question as to the property to be conveyed and the rights with or subject to which it is to be conveyed shall be determined by the court, but it shall be assumed (unless the contrary is shown) that the landlord has no interest in property other than the property to be conveyed and, for the purpose of excepting them from the conveyance, any underlying minerals.(5) The appropriate sum which, in accordance with subsection (3) above, is to be paid into court is the aggregate of— (a) such amount as may be determined by (or on appeal from) the appropriate tribunal to be the price payable in accordance with section 9 above; and (b) the amount or estimated amount (as so determined) of any pecuniary rent payable for the house and premises up to the date of the conveyance which remains unpaid.(6) Where a house and premises are vested in a person in accordance with this section, the payment into court of the appropriate sum shall be taken to have satisfied any claims against the tenant, his executors, administrators or assigns in respect of the price payable under this Part of this Act for the acquisition of the freehold in the house and premises. Section 9 Purchase price and costs of enfranchisement (1) Subject to subsection (2) below, the price payable for a house and premises on a conveyance under section 8 above shall be the amount which at the relevant time the house and premises, if sold in the open market by a willing seller, (with the tenant and members of his family . . . not buying or seeking to buy) might be expected to realise on the following assumptions:— (a) on the assumption that the vendor was selling for an estate in fee simple, subject to the tenancy but on the assumption that this Part of this Act conferred no right to acquire the freehold, and if the tenancy has not been extended under this Part of this Act, on the assumption that (subject to the landlord’s rights under section 17 below) it was to be so extended; (b) on the assumption that (subject to paragraph (a) above) the vendor was selling subject, in respect of rentcharges . . . to which section 11(2) below applies, to the same annual charge as the conveyance to the tenant is to be subject to, but the purchaser would otherwise be effectively exonerated until the termination of the tenancy from any liability or charge in respect of tenant’s incumbrances; and (c) on the assumption that (subject to paragraphs (a) and (b) above) the vendor was selling with and subject to the rights and burdens with and subject to which the conveyance to the tenant is to be made, and in particular with and subject to such permanent or extended rights and burdens as are to be created in order to give effect to section 10 below. Rights of appeal By rule 36(2) of the Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013, the tribunal is required to notify the parties about any right of appeal they may have. If either party is dissatisfied with this decision, they may apply for permission to appeal to the Upper Tribunal (Lands Chamber) on any point of law arising from this Decision. Prior to making such an appeal, an application must be made, in writing, to this Tribunal for permission to appeal. Any such application must be made within 28 days of the issue of this decision to the person making the application (regulation 52 (2) of The Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rule 2013). If the application is not made within the 28-day time limit, such application must include a request for an extension of time and the reason for not complying with the 28 day time limit; the tribunal will then look at such reason(s) and decide whether to allow the application for permission to appeal to proceed, despite not being within the time limit. The application for permission to appeal must identify the decision of the tribunal to which it relates (i.e., give the date, the property, and the case number), state the grounds of appeal and state the result the party making the application is seeking. If the tribunal refuses to grant permission to appeal, a further application for permission may be made to the Upper Tribunal (Lands Chamber).