Wolfhart Gunnar Hauser v Howard De Walden Estates Limited
Decision date: 28 November 2013
Neutral citation: [2013] UKUT 597 (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 correct relativity between the agreed freehold vacant possession (FHVP) value of 11 Harley Place and the value of a 137.98‑year extended lease, given a FHVP that already reflected a substantial flying freehold. The Upper Tribunal preferred the respondent experts and the published relativity material over the appellant’s comparable analysis and held the correct relativity was 99%, dismissing the appeal. The LVT’s premium calculation based on that relativity was upheld.
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 the agreed FHVP of the specific subject property already reflects an adverse physical feature (here a substantial flying freehold), it is impermissible to apply a relativity derived from standard-house comparisons that do not reflect that feature because that would amount to double counting; market transaction analyses must be based on sufficiently reliable, truly comparable data and adjustments, and coarse or numerous adjustments will undermine their weight when distinguishing between close relativity figures.
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 indicated that published relativity graphs may be useful as a secondary check but have limited assistance when extrapolated beyond their published range (for example beyond 100 years), and that purchaser heterogeneity in prime central London may lead some buyers to pay effectively freehold prices for very long leases.