The Keepers and Governors of the Possessions Revenues and Goods of the Free Grammar School of John Lyon v Karen Alamouti
Decision date: 28 April 2014
Neutral citation: [2014] UKUT 87 (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 valuation for enfranchisement of three freeholds in Hamilton Terrace where comparables were sparse and experts disagreed on methodology. The Tribunal set FHVPs at £10.75m (No.70), £7.75m (No.110) and £6.75m (No.106) and derived enfranchisement prices accordingly, rejecting an optimistic short‑term "development hope" valuation for No.106 as too speculative. Parts of the landlord's and tenants' appeals were allowed and dismissed as recorded in the outcome.
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: medium
Where comparables are limited and the market volatile, a tribunal must carefully scrutinise and explain the weighting given to "bottom‑up" (development‑based) versus "top‑down" (market comparables) valuation approaches rather than mechanically averaging heterogeneous transactions; parking absence is to be adjusted as a percentage of FHVP (10% in this case) not a flat sum; and development‑hope value based on post‑acquisition aggregation of interests is only attributable if a reasonably prudent purchaser could, on the valuation assumptions, expect to achieve necessary cooperation/acquisition without speculative risk.
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 cautioned about reliance on local selling agents' reports where multiple reports are strikingly similar and potentially prepared to a prescriptive brief; noted that use of the Savills Prime London index for time adjustments warrants caution given its exclusions; and observed that subterranean accommodation adjustments depend on comparative analysis rather than fixed presumptions.