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Leasehold community whipped up into a frenzy!

The Trustees of the Sloane Stanley Estate v Mundy – Court of Appeal ruling.

The Court of Appeal has ruled against the ‘Parthenia’ model for valuing lease extensions and freehold acquisitions which it has been suggested, if upheld, would have reduced premiums by up to half in some instances.

“And now breathe,” says the doctor.

So, landlords around the country release their drawn breaths and start to relax again.

This eagerly anticipated decision has whipped the Leasehold community up into a frenzy.

It is worth noting that the decision was delivered very quickly; in just short of a week. That must be testament to the extremely detailed analysis given by the Upper Tribunal which I am sure informed the Court of Appeal’s decision.
Nonetheless, in its judgment, the Court of Appeal could be interpreted as sympathising with the idea of change and in doing so might be paving the way for the Government’s reform of Leasehold and perhaps the valuation process for Leasehold Enfranchisement.

The Law Commission is undertaking work on its 13th Programme of Law Reform of which ‘Residential Leasehold’ forms part and I am sure is taking observations from professional valuers in the field of Leasehold Enfranchisement.

Perhaps it’s time for landlords to draw another deep breath… make it a long one though… the Law Commission aren’t just reviewing one topic!

For advice on all aspects of Leasehold, please contact Dominic Danvers on 020 7703 5034 or ddanvers@meaby.co.uk.

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