296 The Ridgeway St Albans, Hertfordshire was subject to a lease for a term of 99 years running from 256′ December 1959 at a ground rent of £15 per annum payable for the whole of the term.
Event though the matter of the cost of the Lease Extension in St Albans had come before the Leasehold Valuation Tribunal and the leasehold owner and freehold reversion owner had agreed the following :
a) The ground rent to be capitalised at 12%.
b) The value of the present leasehold interest is £80, 000.
c) Marriage value to be split 50%.
Matters in dispute leasehold owner and freehold reversion owner were:
a) Valuation date.
b) The price to be paid for the lease extension and in particular the value of the extended leasehold
The Lease Extension Valuation Date
The Leasehold Valuation Tribunal determined that the valuation date was 6th April 2000, being the date on which the Landlord’s Counter Notice was served under Section 45 of the Leasehold Reform, Housing and Urban Development Act 1993.
The Leasehold Valuation Tribunal found that 296 The Ridgeway was a maisonette situated on the second and third floors of a four storey block containing a number of similar maisonettes, built some 40 years ago with brick external walls and a tiled roof.
The property is approached by a staircase and balcony overlooking the communal gardens at the rear of the maisonettes. The accommodation includes a small hall, living room and kitchen on the lower level with staircase to two bedrooms and a bathroom above. There is an outside store and a garage in a separate block.
The Leasehold Valuation Tribunal’s Lease Extension Valuation
The Leasehold Valuation Tribunal accepted the agreed capitalisation rate of 12% for the ground rent and the agreed value of £80, 000 for the present lease also the 50% split in the marriage value.
With regard to the value of the extended lease the Leasehold Valuation Tribunal placed more reliance on the evidence of sales at 337 The Ridgeway and 127 Hughenden Road, rather than on 336 The Ridgeway and 129 Hughenden Road where the sales had taken place some time after the valuation date.
However the Leasehold Valuation Tribunal accepted that prices of maisonettes in this part of St Albans had been rising during 2000. The Leasehold owners valuation was based on a valuation date of 27th January 2000 as opposed to the Tribunal’s decision of 6th April i.e. a difference of some 10 weeks.
No exact evidence of the extent of the rise in house prices during this 10 week period was forthcoming but taking into account the various points put forward by the parties the Leasehold Valuation Tribunal determined that the value of the extended lease as at 6th April 2000 was £90, 000.
The Leasehold Valuation Tribunal determined that the sum payable for the Lease extension should be £5, 122.