Relativity

10:07 23 July in News & Case Studies
0 Comments

Relativity

 

HISTORY

 

UT

 

 

KOSTA V CARWARTH

DECISION DATE –

47 Phillimore Gardens

Parthenia model introduced – Hedonic regression based on transactional evidence between 1987 – 1991

 

 

MUNDY – PCL

DECISION DATE – FEBRUARY 2016

Trustees of Sloane Stanley Estate v Mundy and Lagesse Aaron v Welcome Trust Ltd –  {2016} UKUT 0233 (LC)

Hearing Date February 2016

Flat 3, 36 Elm Park Road, London SW3 6AX

Property located in West Chelsea (PCL?)

Years remaining

flat 3 – 23 years – onerous ground rent GE = 47.2

flat 11 – 37.71 years – onerous ground rent GE = 63.71

flat 5 – 41.32 years GE = 67.06

Relativity adopted

Parthenia model criticised

The reliability of the RICS relativity graphs criticised.

Market evidence preferred to relativity graphs.

If market evidence lacking then Gerald Eve 2015 preferred.

In this case the UT deducted 1%

UT conclusion

  1. We are not able to give an unqualified endorsement to the use of either [the Gerald Eve Graph or the Savills 2002 Graph] for the reasons set out in Appendix C.
  2. “However, we wish to stress that although we are prepared to adopt that figure, it should not be regarded as an unqualified endorsement of that method but only because it is probably the least unreliable figure of those available to us on the evidence in this case.”
  3. Cannot support the Parthenia model and have reservations about the use of the Gerald Eve Graph.
  4. Use transactional evidence or most reliable graph without rights or adjust with rights graph.

Recommend use Savills 2015 enfranchiseable graph and adjust for rights.

method but only because it is probably the least unreliable figure of those available to us on the evidence in this case

 

 

STOBBS – PCL

DECISION DATE – 20 June 2016

Upper Maisonette, 12 Needham Road, London W11 2RP

Location: Notting Hill, Westbourne Park, Bayswater.

Gerald Eve -1%

 

 

REISS V IRONHAWK

DECISION DATE – 27 September 2018

  1. Savills 2015 enfranchiseable graph adjusted for rights.

 

 

MIDLANDS FREEHOLDS LIMITED

DECISION DATE –

Trustees of Barry and Peggy High Foundation [2019] UKUT 0242 (LC) and Midland Freeholds Limited and Speedwell Estates Limited [2017] UKUT 0463 (LC).

 

 

ELMBIRCH

DECISION DATE – 12 August 2019

Oliyide and Elmbirch Properties PLC [2019] UKUT 0190 (LC).

Flat 6 The Lindens, 7 Bottom Park Road, Birmingham B16 9JH

Location: Edgbaston,  Birmingham, West Midlands

Years remaining:65.83

Relativity: 82%

Oliyide was husband made mistakes did not put forward the outer graphs for consideration.

  1. I do not find Mr McKeown’s analysis to be accurate, consistent or helpful. I do not accept that the relativity determined by the Tribunal should act as a foundation upon which to build a complex analysis of the appropriate relativity in this appeal.
  2. The problems of using such graphs outside prime central London were discussed in Midlands Freeholds Ltd’s and Speedwell Estates Ltd’s Appeals [2017] UKUT 0463 (LC) at paragraphs 37 to 43 and for the reasons given there I consider their use to be appropriate in this appeal.

Neither party put forward outer graphs.

UT conclusion

42 and 43 refer to the 2016 Gerald Eve graph and the Savills (2015) unenfranchiseable graph. Refers to Savills unenfranchiseable and adopts 82% in line with Savills unenfranchiseable.

 

 

ZUCCONI

DECISION DATE – 30 August 2019

Trustees of Barry and Peggy High Foundation [2019] UKUT 0242.

26 Barrydene, Oakleigh Road North, Whetstone, London N20 9HG.

Location: North West London – East Barnet, Cockfosters

Years remaining

52.56 years

74.8%

General

FTTP used the average of the 5 outer graphs to determine relativity.

UT conclusion

  1. Harrison criticises outer graphs as 1. based on opinion evidence and LVT decisions and 2. They measure historic relativity whereas recent decisions indicate relativity has declined over time. However what about terms under 45 years the outer graphs are lower than PCL. So under 45 years the PCL graphs must be historic and unreliable. The SEL graph is bases on short lease transactional evidence prior to the Act and therefore a purer relativity.

 

  1. Trott “I do not accept that by taking an average of the relativity graphs for Greater London and England published in 2009 RICS Report the FTT took account of an irrelevant consideration.

 

  1. In my judgement, although the FTT did not err by having regard to an average of the relativities contained in the relevant RICS graphs….

 

We must look to Kosta and the use of appropriate graphs.

 

  1. Cannot support the Parthenia model and have reservations about the use of the Gerald Eve Graph.
  2. Use transactional evidence or most reliable graph without rights or adjust with rights graph.

Recommend use Savills 2015 enfranchiseable graph and adjust for rights.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FTTP

 

34A WROTHAM ROAD

DECISION DATE – 23 May 2019

34A Wrotham Road, Gravesend, Kent DAN 0PW – CHI/ 29UGIOLR/ 2019/0060

Location; Gravesend, Kent.

Missing Freeholder – written report

64.3 years

86.63%

Gerald Eve uplifted by 3%

 

 

82B WOOLWICH ROAD

DECISION DATE – 3 July 2019

82B Woolwich Road, Belvedere, Kent DA17 5EN

LON/ooAD/OLR/2018/1564

  1. The FTTP considered and adopted the 5 outer graphs along with short lease evidence.

 

 

5 MANSARD MANOR

DECISION DATE – 1 September 2019

5 Mansard Court, Sutton Surrey, SM2 5UB

Location; Sutton, Surrey

Years remaining 55.95

Relativity adopted 82.22%

FTTP conclusion

  1. Did not like the evidence of either valuer. Not appropriate to use PCL graphs in Sutton or to use one of the outer graphs. Uses average of the 5 outer graphs 82.22% at 55.95 years.

 

 

7 OUTGATE ROAD

DECISION DATE – 8 October 2019

7 Outgate Road London NW10 9UG – BG/LON/00AE/0LR/2019/0986

North West London, Brent Park, Wembley.

  • No market evidence. Graphs critisised FTTP looks to UT authority;
  • (v) In determining relativity, the Tribunal must focus on the state of the market in North London at the valuation date. In the absence of any evidence of local transactions, we must consider what relativity graph was used by the local market at the time or which graph best reflects the operation of that local market.
  • (vi) Upper Tribunal has directed that the Savills 2015 and GE 2016 unenfranchiseable graphs are reliable sources of relativity data beyond Central London. It is our opinion the market reflects recent and relevant Tribunal guidance on the calculation of lease extension premiums.
  • UT adopted PCL graphs

 

9 HOLLAND ROAD

DECISION DATE – 9 October 2019

Flat D, 9 Holland Road, London W14 8H

LON/ooAW/OLR/2019/0659

West of Kensington, Earls Court, Holland Park.

68.4 years

83.65%

Only relativity to determine

Experts relied upon graphs only outer and PCL

Dunsin relied on 7 graphs

FTTP preferred freeholder and PCL graphs

Savills enfranchiseable with 3.5% adjustment

Savills unenfranchiseable

Gerald Eve unenfranchiseable.

No Comments

Post A Comment