The Cadogan Estate has begun its appeal to the House of Lords as to whether hope value should be added to the price payable by leaseholders for leasehold enfranchisement.
The law lords will consider the joined appeals of Earl Cadogan v Sportelli [2007] EWCA Civ 1042; [2008] 1 EGLR 137 and Pitts v Earl Cadogan; Earl Cadogan v Atlantic Telecasters Ltd [2007] EWCA Civ 1280; [2008] RVR 244.
Hope value arises from the option that a freeholder would have had, in the real market, to sell the freehold or a leasehold extension to the tenant at a future date.
During the next three days, lawyers for Cadogan will also argue that should the Court of Appeal’s finding that hope value should be excluded be upheld, the law does not comply with Article 1 of the First Protocol to the European Convention on Human Rights and must be reinterpreted.
Lord Hoffmann, Lord Walker, Lord Hope, Lord Mance and Lord Neuberger are hearing the appeals.
Kenneth Munro and Philip Rainey are acting for Cadogan and Edwin Johnson QC, Andrew Walker, Stephen Jourdan and Tom Jefferies are acting for the leaseholders.