High value collective enfranchisement where the participating tenants were entitled to acquire an extended intermediate lease granted outside the 1993 Act by the Grosvenor Estate, with the result that they could convert the flats back into a house, realising a gain of some £3m. The intermediate leaseholder claimed that the uplift in value was part of the marriage value, which was to be shared between the freeholder and itself.
The LVT rejected the claim, and accepted
Thomas Jefferies' arguments on behalf of the participating tenants that this development value was not part of marriage value, and that in any event the intermediate lessee was not entitled to any share of the marriage value.
An appeal to the Lands Tribunal is due to be heard in February 2011.
