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The Court of Appeal upholds decision on leasehold relativity in Mundy V The Trustees of Sloane Stanley Estate

The Court of Appeal yesterday delivered their ruling on a landmark lease extension case.

The appeal was granted based on an argument between the leaseholder and the freeholder on how marriage value, (part of the lease extension valuation for leases under 80 years) is calculated.

The valuer acting for the leaseholder contested that the standard, favoured method of valuation which was commissioned by the Grosvenor Estate around 20 years ago was no longer valid and put forward an alternative method of valuation for the calculation of marriage value.

However, the Court of Appeal upheld the previous decision of the Upper Tribunal (Lands Chamber) made in 2016 in favour of the freeholder, the trustees of the Sloane Stanley Estate.

Leasehold matters have in recent months caught the attention of the wider public, largely relating to new build leasehold houses and as a consequence Parliament has taken notice and is looking into this area of residential property practice.

Here at Julian Wilkins & Co. Chartered Surveyors we are always on hand to offer the very best advice to leaseholders and freeholders on lease extension cases taking account of current and evolving practices within this specialist area.


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