- Leasehold enfranchisement—house—valuation—improvements disregard (Alberti v Cadogan Holdings Ltd)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Property analysis: In a decision on a preliminary issue, the Upper Tribunal (UT) has considered the application of the reality principle to the statutory direction in the valuation exercise to disregard improvements carried out by the tenant. Where the planning status of the building, which permitted use as a single house, was a direct consequence of improvement works carried out by the tenant to alter the configuration of the building from five flats to use as a single house, the direction required that the building must be assumed to have had the same planning status on the valuation date as it would inevitably have had if the improvement had not been carried out. If, as was agreed, there was no prospect on the valuation date of planning permission being granted to alter the configuration of the building from flats to a single house, then the improvements disregard required the valuation to be carried out on the assumption that it would have been unlawful as a matter of planning control to use the building as a single house on the valuation date. The decision is likely to have a significant effect on the price payable for the freehold of the house. Written by James Fieldsend, barrister, at Tanfield Chambers, who appeared for the tenant.
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