Interesting case about the effect on value of a covenant not to assign or sub-let a lease within the last 7 years, and whether this could be avoided by a share sale. The First Tier Tribunal adopted Tom’s submissions and the method of valuation. It held that a covenant “ to use and occupy the flat as a private dwellinghouse for the sole occupation of the Lessee and his/her family and servants” prevented use by a company, so that a company lessee could only sub-let or assign the flat to an individual before the last seven years. This adversely affected the value of the short lease, and increased the value of the interest of the head-lessee who could expect to agree variations of the leases in return for a premium.
The decision can be found here.
Tom Jefferies acted for the head-lessee.