This is summary of a Birmingham Lease Extension tribunal decision on an application under section 48 of the Leasehold Reform Housing and Urban Development Act 1993 as amended ("the 1993 Act"). The tribunal had to determine the premium payable for a lease extension of 90 years.
The Leaseholder and Applicant was Mrs G, the leaseholder of the property. The Respondent is Sinclair Gardens Investments (Kensington) Limited, the freehold owner of the Birmingham property.
On 2 July 2009, the Leaseholder gave a tenant's notice to the Respondent under section 42 of the 1993 Act claiming the right to a lease extension for her flat under the 1993 Act. The Landlord gave a counter-notice under section 45 admitting Leaseholder's right the following month. In November, the Leaseholder made the present application to the Leasehold Valuation Tribunal.
Details of the Birmingham property
The property at 25 Grange Crescent, Halesowen, Birmingham, B63 3ED, was maisonette in a block of four similar maisonettes. The unexpired term at the valuation date was 50. 73 years and the yield rate to be applied in capitalising the ground rent was 7%.
Lease Extension of determination of the Birmingham tribunal
The tribunal decided that the appropriate deferment rate was 5. 75%, following the Upper Tribunal (Lands Chamber) decision in Zuckerman and others v Calthorpe Estates (LRA/97/2008). Applying the figures and the other factors agreed between the parties, the tribunal calculated the lease extension premium payable at a sum of £10, 534.
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