Notable cases
- Collective Enfranchisement, Expert Witness
2 Herbert Crescent, London SW1X 0HA
- The Earl Cadogan v 2 Herbert Crescent Freehold Limited (2009)
A stone’s throw from Harrods, the property (as flats) was ready to be converted back into a house following a collective enfranchisement. The client spotted this, bought a flat and structured a deal with the other leaseholders. It went to the Leasehold Valuation Tribunal (LVT) and then the Lands Tribunal.
It was an early case dealing with the treatment of increased value from conversion back to a house. But there was a resident head lessee/porter who could have resisted possession.
The tribunal rejected Michael’s argument that the property would cost more to convert than an existing house, not helped by the client’s cost expert getting confused – however, Michael stood up for what he believed was right in the face of what was described as the most ferocious cross examination imaginable.
At the end of the process, the client sold the property as a house refurbishment at a healthy profit.
- Collective enfranchisement
- Acted for private investor client who bought a lease and organised an enfranchisement with the aim of selling it as a house scheme
- Expert Witness before LVT and Lands Tribunal
Issues
- Freehold values and existing lease values
- Redevelopment of existing building (flats) back into a house
- Risks of planning and obtaining possession (head lessee/porter)
Result
- Michael Lee valuation £2,066,872: landlord valuation £2,581,600/£2,709,950
- LVT determined £2,164,946
- Lands Tribunal determined £2,383,639
Michael_Lee_Surveyors
