(1) JONATHAN HOWARD ROBERTS (2) JANET ANN THAIN v MARIA MERCEDES FERNANDEZ
Decision date: 23 March 2015
Neutral citation: [2015] UKUT 106 (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 the premium payable to extend a 72‑year lease of flat No.70 Andace Park Gardens, focusing on relativity, possible onerous lease adjustments, the deferment rate and the capitalisation rate. The Upper Tribunal accepted the F-tT's use of RICS market relativity graphs, rejected proposed adjustments for onerous lease features, reduced the deferment rate to 5.25% and increased the landlord's capitalisation rate to 7%, but dismissed the appeal as the net change to the premium was de minimis (premium ~£10,052).
Ratio decidendi
This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.
AI confidence in this ratio decidendi summary: high
Where available and reliable, RICS graphs and demonstrable market evidence should be given weight in assessing relativity; valuation adjustments (for onerous lease features or different rates) require specific, reliable evidence demonstrating altered market risk or expectations, and prior LVT decisions are not binding and carry limited evidential weight.
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
Sales data lacking detail (condition, floor level, improvements, presence of a lift) are of limited use for relativity; a reversionary right to 1% of sale proceeds is an attractive reversion feature but irrelevant to compensation if it survives the lease extension; alleged management failings do not justify an uplift for obsolescence risk absent evidence that competent management will not be in place.