Gerald Eve’s dedicated Residential Leasehold Enfranchisement team is at the forefront of the enfranchisement sector and advises some of the main Prime Central London landed Estates including Grosvenor, Cadogan, and Howard de Walden – as well as advising other individual landlords and tenants.
The relevant legislation contains complex valuation provisions to arrive at the premiums payable by qualifying leaseholders wishing to exercise their statutory rights to acquire the freeholds of houses or blocks of flats or new long leases of individual flats.
Gerald Eve has taken a specialist interest in these statutory provisions since the Leasehold Reform Act first came into effect in 1967, followed by the Leasehold Reform, Housing and Urban Development Act (1993) and latterly the Commonhold and Leasehold Reform Act (2002).
Our comprehensive range of services, provided by our specialist team of Chartered Surveyors, includes providing bespoke valuations, negotiating premiums and advising on the best strategy for the conduct of a claim in order to seek the best resolution for the client. Possessing an intimate knowledge of the legislation, we are well placed to liaise with legal representatives appointed by our clients. Where claims are disputed and referred to Tribunals for resolution, then members of the team are well qualified to provide expert valuation evidence before the First Tier Tribunal or on appeal to the Upper Tribunal. In the rare event that cases may be appealed on up to the Court of Appeal or the Supreme Court, we are able to provide valuation support for the client’s legal team.
Expert valuation evidence has been provided in various landmark Lands Tribunal / Upper Tribunal cases including:
- Arbib (2005) on deferment rates
- Sportelli (2006) on deferment rates and hope value,
- Nailrile (2008) on valuing intermediate leasehold interests
- Klaasmeyer (2010) on leasehold structure
- Cravecrest (2012) on development value
- 82 Portland Place (Freehold) Limited (2014) on Purchaser’s Margin and leasehold/freehold Relativity
The issue of leasehold/freehold relativity is very much a live issue affecting the assessment of marriage value in premium calculations. In this respect, witness of fact evidence on the makeup of the Gerald Eve 1996 Graph of Relativities and settlement evidence was provided by Gerald Eve partner Julian Clark and retired partner Ian Macpherson in the leading Upper Tribunal case on relativity known as Mundy (2016), with the Upper Tribunal finding that the GE 1996 Graph was the “industry standard”, widely used by enfranchisement practitioners in Prime Central London. Since then we have published a revised graph which takes into account the Upper Tribunals comments, that due to structural changes in the market, they suggest the Gerald Eve 1996 graph overstated the relative value of a lease.
Where clients are party to appeals on points of law to the Court of Appeal or the Supreme Court, we are well placed to provide supporting valuation advice. Such cases have included:
- Boss Holdings (HofL 2008) (definition of a house under the LRA 1967)
- Prospect Estates (CofA 2008) (definition of a house under the LRA 1967)
- Sportelli (HofL 2008) (hope value)
- Hosebay & Lexgorge (SC 2012) (definition of a house under LRA 1967)
- Cravecrest (CofA 2013) (development value)
As well as being professional members of the RICS, the Enfranchisement team are RICS Registered Valuers and members of the Association of Leasehold Enfranchisement Practitioners.
With our long-standing knowledge and experience of the legislation, our residential leasehold enfranchisement specialists have the skills and expertise necessary to provide arguably the best advice available in this complex and ever changing field. We work closely with our colleagues providing other services including Valuation, Capital Markets, Planning & Development and Building Consultancy in order to deliver the best service to the firm’s clients.