This paper has been prepared by Julian Clark of Gerald Eve LLP to address the implications of the Upper Tribunal’s decision on Relativity (the Mundy decision), in so far as they relate to the Gerald Eve 1996 Graph and the reviewed version of the Graph that we published in December 2016 in the light of the Upper Tribunal’s decision.
The Mundy decision was published in May 2016 following the major group hearing on the issue of Leasehold / Freehold Relativity in Leasehold Reform Valuations which took place in January 2016.
In the decision, the Upper Tribunal gave its conclusions on a number of important issues relating to the valuation of leasehold interests in enfranchisement valuations. Amongst those conclusions, the Upper Tribunal held that by the time of the valuation dates for the appeal cases being February to April 2014:
In the light of the Upper Tribunal’s conclusions, Gerald Eve reviewed the 1996 Graph and in December 2016 published a new table of relativities and graph to be known as the Gerald Eve 2016 Graph. For unexpired terms below 100 years relativities shown by the 2016 Graph are lower than those shown by the 1996 Graph and are the same as the 1996 Graph for terms above 100 years.
Whilst since its publication Gerald Eve have referred to the 2016 Graph in premium negotiations, the 1996 Graph has not been withdrawn and remains as a matter of record.