Price of end-terrace Pimlico, London, house on four floors — Lease with 4 1/2 years unexpired — Two superior interests: freeholder’s interest and head lessees’ reversionary interest with 118 years to run — Total absence of any evidence of sales of sites — Standing house approach adopted — Figures derived from agreed settlements approached with caution by tribunal but provided some guidance to level of values — Site value at 35% adopted, relying on general practice in previous decisions of Lands Tribunal and London LVT and bearing in mind site’s awkward shape (a trapezium) and its proximity to adjacent higher buildings on one side — Tribunal consider it unnecessary to include reversion to rack rent stage, as in head lessees’ valuation — In their view, where there is a lengthy period before expiry of head lease the realistic approach is to value in perpetuity — Evidence of settlements of freehold interests on basis of 15 to 24 YP of ground rent, but tribunal adopt 10 YP — Some ‘Delaforce’ effect, particularly where, as in present case, sums involved are relatively small — Head leasehold interest price determined at £23,055 against tenant’s £15,163 and head lessees’ £30,650 — Freehold interest price determined at £156
Pilgrim and another v Central Estates (Belgravia) Ltd and another
Price of end-terrace Pimlico, London, house on four floors — Lease with 4 1/2 years unexpired — Two superior interests: freeholder’s interest and head lessees’ reversionary interest with 118 years to run — Total absence of any evidence of sales of sites — Standing house approach adopted — Figures derived from agreed settlements approached with caution by tribunal but provided some guidance to level of values — Site value at 35% adopted, relying on general practice in previous decisions of Lands Tribunal and London LVT and bearing in mind site’s awkward shape (a trapezium) and its proximity to adjacent higher buildings on one side — Tribunal consider it unnecessary to include reversion to rack rent stage, as in head lessees’ valuation — In their view, where there is a lengthy period before expiry of head lease the realistic approach is to value in perpetuity — Evidence of settlements of freehold interests on basis of 15 to 24 YP of ground rent, but tribunal adopt 10 YP — Some ‘Delaforce’ effect, particularly where, as in present case, sums involved are relatively small — Head leasehold interest price determined at £23,055 against tenant’s £15,163 and head lessees’ £30,650 — Freehold interest price determined at £156
