Regis Group, the Southend-based residential developer owned by brothers Nick and Peter Gould, has won a legal dispute with the Grosvenor Estate over the leasehold enfranchisement of a
The Lands Tribunal rejected Grosvenor’s appeal against a decision of the leasehold valuation tribunal (LVT) over the price payable by Regis on enfranchisement of 46/47 Belgrave Mews North, London SW1.
In 2000, an adjoining property at
The price payable for that enfranchisement included an amount to reflect the diminution in value of the freehold interest in the mews house through the loss of opportunity to dispose of the freehold of it and no 47 together.
In 2004, Nick Gould and his wife offered to purchase no 47 and the leasehold of the mews house. In separate transactions they paid £5.2m and £1.2m respectively. The interest in the mews house was then transferred to Regis.
Subsequently, when Regis sought to enfranchise the mews house, Grosvenor sought a £700,000 premium on top of the price for the enfranchisement.
It argued that, on enfranchisement, the mews house and no 47 could be merged and Grosvenor should be compensated for that.
The LVT concluded that no premium would be paid because Grosvenor had already been compensated for the loss of the ability to combine no 47 and the mews house and therefore had “suffered no further loss for which it is entitled to receive what would in effect be further compensation now”.
After hearing expert evidence from Gerald Eve, for Grosvenor, and Knight Frank, for Regis, the president of the Lands Tribunal, Mr George Bartlett QC, dismissed Grosvenor’s appeal and ruled that “the landlord had sustained no loss that required to be reflected in an additional payment”.
The Trustees of the Will of the Most Noble the Second Duke of
Judith Jackson QC (instructed by Boodle Hatfield) appeared for the appellants; Jonathan Gaunt QC (instructed by Wallace) appeared for the respondent.
