Cases - Alexander Voyvoda v Grosvenor West End Properties

Record details

Name
Alexander Voyvoda v Grosvenor West End Properties
Date
[2013]
Citation
UKUT 0334 (LC)
Legislation
Keywords
Deferment rate – enfranchisement – management – Service Charges (Consultation Requirements) (England) Regulations 2003 – Leasehold Reform, Housing and Urban Development Act 1993, section 48, 42
Summary

The appellant leaseholder (V) appealed against the decision of the LVT as to the correct deferment rate in valuing a reversion. V contended that the LVT was wrong to find that when valuing the reversion, in what was a well-run block of flats in prime central London, the 0.25% uplift for flats to the generic deferment rate of 4.75% in Cadogan v Sportelli [2007] 1 EGLR 153, should not be increased by a further 0.25% to reflect management risks in addition to those considered in Sportelli.

The appeal would be dismissed. Market awareness post-Sportelli of the potential severity of the consequences for the landlord of a failure to comply with the Service Charges (Consultation Requirements) (England) Regulations 2003 was the reason for the additional 0.25 management allowance in Zuckerman v Calthorpe [2009] UKUT 235 (LC) and City & County Properties Ltd v Yeats [2012] UKUT 227 (LC).

In light of the Supreme Court decision in Daejan Investment Ltd v Benson [2013] UKSC 14, the risk profile which had formed the basis of the Tribunal’s decision in Zuckerman and Yeats had been changed to such an extent that although there was still an element of risk, the risk level was adequately covered by the 0.25% uplift established in Sportelli.