LVT has change of heart over relativity?

[Ian_R]

For all you lease extension calculation addicts.

The Leasehold Valuation Tribunal in their earlier judgements state that they disregard the LEASE graph of LVT determinations for relativity for the purposes of evidence. Case 1656 of May 2008 seems to have partially reversed this policy,

“The Tribunal differs from the valuers and consider that the Beckett & Kay Graph of Graphs is helpful as it dealt with a variety of settlements and decision (sic). The Tribunal therefore referred to the Graph of Graphs, specifically the Moss Kaye 2005 figures where the relativity for a lease with 66 years left to run was about 87% and the LEASE LVT determination was about 90%. In view of the fact that there was no consistent figure, the Tribunal took the average of 88.5%.”

So apparently we can now use relativities derived from a trend line of LVT determinations from 1994 to 2007?