No sheriff but plenty of Robin Hoods?
You may have noticed the number of times ‘criminal offence’ appears against things a landlord or his agent should do? Simple things like providing copies of insurance, or summaries of accounts? Continue reading “What, no sheriff of Lease-ingham?”
All that remains for me to do is to offer a download spreadsheet of the formula.
Online widgets as you know do not offer all the functionality of the formula. I have included as much as so far found studying Upper Tribunal cases, such as the various variables aside from ground rent increments and lease values. Continue reading “Lease Extension Formula Spreadsheet”
The Variables are not, as far as I know, an old rock band from the seventies – if they were, I am certain Johnnie Walker would be playing them. I’ve already listed most of them in the previous article but here again are the ‘band’ members: Continue reading “Lease extensions – the variables”
Who decided on obscure accrual accounting?
Based on my experience, few leaseholders understand accrual accounts. Do you? I’m not too sure managing agents do either. Come to that, I wonder how many Members of Parliament know how to read them and what lies behind them? Continue reading “Transparent Accounting Anyone?”
ELMBIRCH PROPERTIES PLC  UKUT 0314 (LC) re. 51 Humphrey Middlemore Drive
We start with bare facts:
“12. The long lease of No. 51 was granted on 20 June 1986 and is for a term of 99 years from 24 June 1985. The initial annual rent was £45, subject to a fixed increase on 24 June 2016 to £90, and a further increase on 24 June 2049 to £180. On 9 November 2015 the tenants … gave the appellant notice under section 42 of the 1993 Act claiming a new lease…“
We need to organise this data for the ground rent capitalisation calculations:- Continue reading “Lease Extension Formula Part 2”
I’ll return later to the valuation caper. First I will work through an example of the formula using the case of ELMBIRCH PROPERTIES PLC  UKUT 0314 (LC), as this was decided by the UT on 27 July 2017, well after the Mundy case.
The appeal involved two extension premiums. I will use just one, the calculation for 51 Humphrey Middlemore Drive, leaving you free to practice on the other. The Upper Tribunal’s maths are found on pages 20 and 21 of their decision. Continue reading “Lease Extension Formula Part 1”
The tortuous extension route is set out in Chapter II, Part I of the LRHUDA 1993, which confers (on a qualifying tenant of a flat for 2 years) a right to acquire a new lease on payment of a premium determined by a statutory formula. Except the freeholder does not have to counter with a formula based premium offer.
The new lease replaces the existing lease for a term expiring 90 years after the term date of the existing lease and at a peppercorn rent for the whole term (section 56(1) LRHUDA 1993 ). Continue reading “Lease Extension Process”