Challenge to reduce leasehold extension costs unsuccessful
A challenge led by Mr Mundy and chartered surveyor Mr Wyatt of Parthenia Valuation to reduce leasehold extension costs was unsuccessful at the Court of Appeal.
The case in question Mundy v the Sloane Estate, involved a small flat in Chelsea where the lease had fallen to less than 23 years and the freeholder was seeking £420,000.00 to agree an extension. The challenge if successful would have meant those with less than 80 years remaining on a lease could have paid up to 30% less when renewing the lease. The challenge was rejected by the Upper Tribunal leading to the appeal at the Court of Appeal. This appeal was then rejected by the Court of Appeal. This was a disappointing outcome for leaseholders and a victory for freeholders.
It appears as though there will now be calls for the government to act. In concluding his judgement Lord Justice Peter Jackson stated "The Law Commission is to consider the simplification of valuations under the Act. It may be, therefore that the holy grail will one day be found". In addition, My Wyatt stated that the government needs to act and referred to previous comments made by Sir Peter Bottomely MP who said that in the event of the Court of Appeal not overturning the decision that parliament should look to consider simplifying valuations through statute.
If you are looking to buy a leasehold property please do not hesitate to get in touch with our specialist conveyancing department.