Managing Agents Massively Screwed Up Section 42

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    #16
    Originally posted by divadee View Post

    S42 amount - 10,052
    lease length- 64 years
    property location - central south coast (where everyone is flocking too currently 😉)
    property value with a long lease - approx £160,000
    ground rent - £25 doubling every 25 years

    Thank you for any help in advance.
    The statutory price assuming 85% relativity gives a result of £15,250 (Capitalization rate 6% - but that hardly matters, 5% for deferment rate - in line with Sportelli)

    So you are down £5,000 - so as I suggested earlier everyone takes a haircut - now it would be £1650 each - it really is in everyone's interest because in litigation, at this figure, there will be no winners

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      #17
      Originally posted by Lorimer View Post

      You can only make this argument within the time given for the counter notice and then only if the premium offered was derisory ...
      That is not correct

      If a notice proposes a figure which is too low, then the notice can be viewed as invalid and therefore (if that assumption is correct) no counter notice is required

      The lessee can then apply for a vesting order and the merits of the case will be judged, if it is found to be valid then of course the failure to serve the counter notice will mean the figure proposed has to be accepted

      The litigation costs will dwarf the sums involved and all parties must reflect upon that - everyone needs to take a haircut !

      Comment


        #18
        Taking your figures and assuming the ground rent has now doubled to £50 the lease extension is fairly valued at in the order of £17,700 (plus section 60 costs). There was recently a case of a chap who sued a local authority and got judgement online during lockdown as there was no local government officer bothering to look at the post. The judge agreed to set it aside. I think it is pi55 poor for a managing agent not to arrange for someone to have come in and looked for urgent notices and so forth and you are entitled to look to them for damages. For what it is worth I run a compact managing agency and we managed to get one person in a couple of days a week throughout, who scanned anything important looking to personnel who were either shielding or locked down.

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