Long Lease Extension and Enfranchisement Valuations

The Practice has seen this area of valuation work increase rapidly as flats built in the 1960's and 1970's are encumbered by what are now considered to be  inadequate length leases which do not comply with mortgage valuation criteria.  This can have a substantial effect on either the value for tenants or landlords.  Peter has gained a good working knowledge of the complex legislation that governs this area of valuation work and regularly advises both landlords and tenants on their rights and values. 

The House of Lords' determination of the 'Sportelli case' in 2004 had a pronounced effect on the reversionary values of long leasehold properties to the detriment of tenants and the advantage of landlords or reversioners. This case primarily related to properties in central London. In the Zuckerman case in 2009 The Upper Tribunal heard and accepted evidence that properties in the provinces had lower value growth rates and suffered faster obsolescence and higher management costs. As a consequence it was successfully argued that a high deferment rate should be applied to the reversionary value of the landlord’s interest. This decision has been to the advantage of long leasehold tenants and detriment of the landlords.