Kutchukian v John Lyon's Charity, Trustees of the

Kutchukian v John Lyon's Charity, Trustees of the

The correct approach to valuation under the Act is to determine the legal rights definitively, not to apply a discount for legal uncertainty; the competent landlord (freeholder) is entitled to exercise redevelopment rights under section 61; compensation for loss of lease does not include development value.

Parties
Applicant Below; Appellant in Appeal 1279; Respondent in Appeal 1186: Alan Kutchukian; Respondents Below; Appellants in Appeal 1186; Respondents in Appeal 1279: The Keepers and Governors of the Possessions Revenues and Goods of the Free Grammar School of John Lyon (Trustees of John Lyon’s Charity)
Jurisdiction
England and Wales
Judgment Date
20 February 2013
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Trustees’ appeal allowed; Mr Kutchukian’s appeal dismissed.
Legal Topics
Collective Enfranchisement, Leasehold Reform, Valuation of Freehold Interest, Statutory Lease Extensions, Compensation for Loss of Lease
Property Law Landlord and Tenant Law Collective Enfranchisement Leasehold Reform Valuation of Freehold Interest Statutory Lease Extensions Compensation for Loss of Lease

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Parties

Alan Kutchukian

Applicant Below; Appellant in Appeal 1279; Respondent in Appeal 1186

The Keepers and Governors of the Possessions Revenues and Goods of the Free Grammar School of John Lyon (Trustees of John Lyon’s Charity)

Respondents Below; Appellants in Appeal 1186; Respondents in Appeal 1279

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether valuation for collective enfranchisement should be based on a definitive legal determination or discounted for legal uncertainty
  2. 2 Who is entitled to exercise redevelopment rights under section 61 of the Leasehold Reform, Housing and Urban Development Act 1993
  3. 3 Whether compensation for loss of lease includes development value

Ratio Decidendi

The correct approach to valuation under the Act is to determine the legal rights definitively, not to apply a discount for legal uncertainty; the competent landlord (freeholder) is entitled to exercise redevelopment rights under section 61; compensation for loss of lease does not include development value.

Court Disposition

Trustees’ appeal allowed; Mr Kutchukian’s appeal dismissed.

Orders

  • Valuation to proceed without 30% discount for legal uncertainty.
  • Price payable for freehold set at £284,592.