Kutchukian v John Lyon's Charity, Trustees of the [2013] EWCA Civ 90 (20 February 2013)

Kutchukian v John Lyon's Charity, Trustees of the [2013] EWCA Civ 90 (20 February 2013)

The correct approach is to resolve legal uncertainties as legal issues, not as valuation risks; the competent landlord (freeholder) is entitled to exercise section 61 rights; omission of reservation in leases does not affect this right; and compensation under Schedule 14 does not include development value.

Citation
[2013] EWCA Civ 90
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
Appeal / Court of Appeal (civil Division) on Appeal From the Upper Tribunal (lands Chamber)
Outcome
Trustees' appeal allowed; Mr Kutchukian's appeal dismissed.
Legal Topics
Collective Enfranchisement, Leasehold Valuation, Statutory Interpretation, Compensation for Lease Termination, Valuation Assumptions
Property Law Landlord and Tenant Law Collective Enfranchisement Leasehold Valuation Statutory Interpretation Compensation for Lease Termination Valuation Assumptions

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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

Appeal / Court of Appeal (civil Division) on Appeal From the Upper Tribunal (lands Chamber)

Legal Issues

  1. 1 Whether legal uncertainties under section 61 and Schedule 14 of the Leasehold Reform, Housing and Urban Development Act 1993 should be resolved as legal issues or discounted as valuation risks
  2. 2 Who is entitled to exercise rights under section 61 (immediate landlord or competent landlord)
  3. 3 Whether omission of reservation in leases under section 57(7)(b) affects the right to exercise section 61

Ratio Decidendi

The correct approach is to resolve legal uncertainties as legal issues, not as valuation risks; the competent landlord (freeholder) is entitled to exercise section 61 rights; omission of reservation in leases does not affect this right; and compensation under Schedule 14 does not include development value.

Court Disposition

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

Orders

  • The price payable for the freehold is to be calculated without the 30% discount for legal uncertainty, resulting in a figure of £284,592.