[2025] UKUT 00324 (LC)

The Property is a self-contained flat on the first floor of a part 6, part 7 storey Victorian mansion block near Edgeware Road station in Central London. The gross internal floor area of the Property is 1,439 sq ft, and it comprises five rooms (three or four bedrooms and one or two reception rooms), together with a kitchen, bathroom and additional WC. It was described by the FTT as a “well presented property that appears to be maintained nicely and decorated to a good standard”. The building is served by a lift.

Previous tenants had acquired the Property on 26 February 2021 at a price of £990,000. Neither they nor any predecessor of theirs had carried out improvements which the Act would require to be disregarded, and the required valuations are therefore of the Property in its actual condition at the valuation date.

That valuation date is 6 October 2023, the date on which the previous lessee gave notice exercising the right to acquire the new lease. At that date 54.71 years remained of the original term of 99 year lease granted in 1979. The notice proposed a premium of £180,720.

The appellant admitted the lessee’s right but proposed a premium of £399,690 for the grant of the new lease.

The current lease of the Property was then sold by the previous lessee to the respondent on 9 February 2024 for £1,170,000, with the benefit of the admitted right to a new lease on terms yet to be agreed or determined.

On 25 April 2024 the respondent applied to the FTT for a determination of the premium payable for the new lease.