[2024] UKUT 26 (LC)

One of the primary components in the calculation of the premium payable for an extended lease is the “FHVP”, the freehold value of the flat with vacant possession. The figure is needed both to calculate what the lessor loses as a result of the extension and also to calculate marriage value (we set out the full calculation at the end of our decision). It is ascertained by valuing the extended lease, which the valuers agree is worth 99% of the freehold; and the value of the extended lease is ascertained in the usual way by consideration of comparable sales, in this case flats in the vicinity, some in the block.

As noted above, we are asked to determine a number of points whose resolution will enable us to determine the value of the extended lease and of the FHVP.