BIRCHAM & CO (NOMINEES) (NO 2); Ms S E STOWELL v Mr MARTIN CHRISTOPHER CLARKE; Mrs SHANEEN CLARKE LRA/63/2005
[1]Following the Tribunal’s decision on preliminary issues in the five cases now referred to shortly as Cadogan v Sportelli, of which the present appeal was one, I have received from the appellants a revised valuation by Mr Roland Cullum FRICS. This valuation, a copy of which is appended to this decision, replaces the one earlier submitted, and it reflects the Tribunal’s decision at para 124 of Cadogan v Sportelli that the deferment rate for the appeal property should be 4.75%. The revised valuation also incorporates (as did the earlier one) an allowance for hope value as an addition of 20% to the value of the reversion prior to the statutory marriage value apportionment. Paragraph 112 of the decision in Cadogan v Sportelli endorsed this as the appropriate method for reflecting hope value, and I see no reason not to accept Mr Cullum’s quantification of 20% in the circumstances of this appeal.[2]The appeal is therefore allowed and the price payable is determined at £943,358.[3]It is noted that on page 7 and in paragraph 124 of the decision in Cadogan v Sportelli that the Members referred to this appeal as being uncontested. However, it should be recorded that, whilst the Trustees in Bankruptcy of Mr Clarke said they would not be contesting the appeal, Mrs Clarke remains a party, although no written representations have been made by her, or on her behalf. DATED 9 November 2006 (Signed) P R Francis FRICS 2 APPENDIX LRA/63/2005 13 South Terrace, Kensington, London SW7 Freehold with Vacant Possession £2,085,000 Rent £94 YP 22.6 years @ 4.75% 12.2 £ 1,147 Reversion to £2,085,000 PV of £1 in 22.6 yrs @ 4.75% 0.35 £729,750 Value of Term and Reversion £730,897 Leasehold Value £1,000,000 Hope Value Freehold Value with Vacant Possession £2,085,000 Value of Term and Reversion £ 730,897 Leasehold Value £1,000,000 £1,730,897 Latent value £ 354,103 Hope value @ 20% £ 70,820 Plus Value of Term and Reversion £ 730,897 Open Market Value of Freeholder’s Interest £ 801,717 Marriage Value Freehold with Vacant Possession £2,085,000 Open Market Value of Freehold Interest £ 801,717 Leasehold Value £1,000,000 £1,801,717 £ 283,283 Marriage Value @ 50% £ 141,641 Price Payable: Open Market Value of Freehold Interest £ 801,717 50% of Marriage Value £ 141,641 £ 943,358 3