Valuers Search For The Holy Grail

In January 2018, the Court of Appeal upheld the decision of the Upper Tribunal in Mundy v Trustees of the Sloane Stanley Estate which rejected the Parthenia model as a means of calculating marriage value to determine the premium payable for a lease extension under the Leasehold Reform Housing and Urban Development Act 1993.

Background

Under the Leasehold Reform, Housing and Urban Development Act 1993 (the "Act"), upon payment of a premium, long leasehold owners of flats have a right to acquire a new lease of the flat for a term of 90 years plus the residue of the existing lease, at a peppercorn rent. The premium consists of three components, one of which is the landlord's share of 'marriage value'.