Mr Kwan Shing Wong & Mrs Kan Fong Wong v Manchester City Council
Decision date: 5 September 2013
Neutral citation: [2013] UKUT 431 (LC)
Overall AI summary confidence: high
Short overview
This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.
AI confidence in this short overview: high
This appeal concerned compensation after compulsory acquisition of 1 Silverdale Street, a small hot‑food shop, focussing on the freehold value at vesting and disturbance payments. The Tribunal accepted the council valuer's rental/yield‑based valuation and rejected the claimants' higher figures and loss‑of‑rent claim. Disturbance was awarded on a forced‑sale/depreciated basis (c. £8,000 for fixtures) plus an extinguishment allowance of £10,000, giving total compensation about £89,250.
Ratio decidendi
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AI confidence in this ratio decidendi summary: medium
Where direct capital comparables are limited and the owner holds the property as an investment, a valuation based on rental comparables and an appropriate yield is a reliable method for fixing the market value of the freehold at the relevant date. Disturbance (fixtures and fittings) is to be assessed on a fair forced‑sale/depreciated basis rather than by new‑for‑old replacement costs.
Obiter dicta
This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.
AI confidence in this obiter dicta summary: medium
The Tribunal treated late marketing particulars of non‑comparable, unsold properties as of little weight. It also noted that continued occupation after vesting without payment can undermine claims for occupation‑related losses such as loss of rent.