The Cadogan Estate has begun its House of Lords appeal to overturn a ruling that “hope value” should not be added to the price paid by leaseholders for leasehold enfranchisement.
The Law Lords will consider the joined appeals of Earl Cadogan and another versus Sportelli and another, and Earl Cadogan versus Pitts.
“Hope value” is the value arising from the option that a freeholder would enjoy in the real market if it was to sell the freehold or a leasehold extension to the tenant in the future.
Over the next three days lawyers for Cadogan will also argue that if the Court of Appeal finding that hope value should be excluded is correct then the law is not compliant 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 while Edwin
