[2025] UKUT 00324 (LC)

This is an appeal against a decision of the First Tier Tribunal (Property Chamber) (“FTT”) dated 13 January 2025 determining the premium payable for the extension of a leasehold interest with 54.71 years unexpired in Flat 2E, Hyde Park Mansions, Chapel Street, London NW1 5BL (“the Property”).

The appellant is the landlord, Deritend Investments (Birkdale) Limited and the lessee, Fung Tai Engineering Company Limited, is the respondent.

Before the FTT the appellant relied on expert evidence supporting a premium of £279,105, while the respondent’s expert considered the figure should be £143,000. For two valuations of an unexceptional property in a relatively busy market to diverge to that extent cannot be explained by a difference in valuation judgment alone. The FTT determined a premium of £159,000, which cannot be seen as an endorsement of the views of either expert. Enfranchisement valuation is complex, but it is important that there be clarity and consistency in the approach to be taken and this Tribunal gave permission to appeal on the grounds that it was arguable that the FTT had wrongly applied relevant principles of valuation practice or had erred in its appreciation of the evidence. The FTT did not undertake an inspection of the subject property or comparables and although the expert witnesses gave their evidence in person and were cross examined, the substance of that evidence was contained in written reports. The appeal therefore takes the form of a review of the FTT’s decision and has been conducted on the basis of the parties’ written representations.

Ms Nicola Muir made representations on behalf of the appellant and Mr Benedict Uzor of Topstone Solicitors did so on behalf of the respondent.