BUSHWACKED ?        - Its not cricket but the Lands Tribunal!

Those England supporters following the second Ashes Test will be pleased that they are apparently putting up a stand against the Aussie rollercoaster. The Lands Tribunal is also on another “high” with a recent decision that affects solicitors and valuation surveyors.

Statutory valuations are an interface between our two professions. You can assist by helping to clarify the issues and the basis on which valuations are made - the opening batsman. Valuation surveyors can be described as middle order batsmen – we believe the workers!

Both work together as advocates and expert witnesses respectively and as a team can win or loose the game!

The Sportelli decision

The Lands Tribunal has given a recent collective decision relating to residential lease extensions and freehold purchases (see link below).*

This decision dealt with the “deferment rate” and “hope value” within the valuation calculations. The main points of principle which we feel are important for solicitors and valuers are:

• The LT can only look at the evidence presented to it
• It had financial experts to “prove” the need for a particular deferment rate in the prime central London area (PCL) and rejected real market evidence from a valuation expert. 
• The LT is a specialist tribunal with jurisdiction to promote consistent practice in the application of law to its decisions (Sportelli Para 114)
• It makes decisions on principle of practice to which regard should be had by Valuation Tribunals and valuation practitioners. (Sportelli Para 117)

What next?

The problem as we see it is that the market in which solicitors and valuers operate is very different outside the PCL . We have seen anomalies with the statutory calculations and in some cases huge increases in premiums for extensions and enfranchisement. 

In any tribunal valuation surveyors must give their independent expert opinion.

We understand that leave to appeal from the LT  has been granted but in the meantime it seems we are to follow this ruling?  Any Comments?

Please let us know
 

* CTRL + Click  http://www.landstribunal.gov.uk/judgmentfiles/j395/LRA-50-2005.doc

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This is part of a regular series of topical articles provided exclusively by RDN Chartered Surveyors. If you would like further information or add your comments please reply to this e mail or contact Roger Nelson on 0800 902 0466