What was talked about as being a landmark case in the world of lease extensions has proved not to be.
You may have read about the case of Adrian Howard Mundy v The Trustees of The Sloane Stanley Estate which challenged the way premiums for a lease extensions are calculated (amongst other things).
However, the Court of Appeal upheld the previous ruling by the Upper Lands Tribunal to reject the alternative 'Parthenia' model and stick with the 'Gerald Eve' model which has been used for over 20 years.
If the challenge had succeeded, it is likely that the cost of lease extensions for leaseholders would have reduced. Whilst this was good news for leaseholders wishing to extend, it was not good news for landlords.
There is still some hope for those seeking a change in the way lease extensions are dealt with. Enfranchisement is one of the three priority areas that the Law Commission will look at first when they begin their two-and-a-half-year residential leasehold project.
Rejecting the challenge, Lord Justice Lewison said the Upper Tribunal was ‘well within the scope of its functions’ to rule out future use of the Parthenia model. Lewison noted that the Law Commission is considering how valuations can be simplified under the Leasehold Reform, Housing and Urban Development Act 1993.