Leasehold Reform- Mundy Appeal Status Quo


The New Year for leasehold reform was off to a quick start with the long-awaited decision of the Court of Appeal, in the case of Sloane Stanley Estate v Mundy, here after referred to as Mundy.

The outcome was to reject the application for leave to appeal the decision of the Upper Tribunal on all grounds.

The original Mundy case was decided on 10th May 2016 and dealt with lease extensions under the Leasehold Reform Housing and Urban Development Act 1993 of a property in Chelsea. The disagreement as is so often the case when the unexpired lease term is so short was the Relativity. This really was a David and Goliath battle, with the Tenant on one side relying on the Parthenia model, which uses a statistical method known as Hedonic Regression (generally producing a more tenant-friendly relativity) and the Freeholder on the other side, relying on the already existing and long-standing graphs of Relativity but coupled with a methodology which reduced the Relativity still further.

The Chamber rejected the use of the Parthenia model going so far to describe it as “a clock which strikes thirteen”. Furthermore, they stated that it should not be referenced in any future cases. The chamber members ruled that in the absence of real-world evidence, Valuers should look to the graph produced by Savills with a deduction to take account of Act rights based on the experience of the surveyor. This, they said, should be cross-referenced against the Gerald Eve graph and the lower relativity selected. Such a decision saw lease extension and collective enfranchisement premiums noticeably rise overnight.

The anticipation of the outcome of the appeal has been much published in the news over the last weeks as the holy grail for leaseholders, and Valuers all over London have been waiting with baited breath and keen excitement for the news to drop. The upshot of the Court of Appeal’s decision will be that premiums for lease extensions won’t be reducing as they might have done had the Parthenia model been approved.

Learn more about our Lease Reform services or call our RICS Chartered Surveyors on 020 7736 2383 to discuss your requirements.

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Sara Thomas
09:07 19 Jan 21

The homebuyer’s report carried out by Harding Chartered Surveyors was clear informative and timely. The level of detail was just what I needed in order to appreciate what the property needed doing and to help me with my decision to proceed with the purchase process.

Aimee Glensor
19:09 08 Jan 21

Really helpful, made the process easy and really efficient service even though it was over the holiday period. Would def recommend / use again

Claudio Mascolo
18:24 30 Nov 20

Kate is very responsive and also took time to advise me on the phone at the very beginning. Scott Ingham did our report. It was thorough and informative. Felt in safe professional hands throughout.

John Simmons
15:53 29 Oct 20

Martina Glaser
17:56 28 Oct 20

Scott completed a survey for me on a flat purchase and both he and Kate were great – very quick to respond, knowledgeable, thorough and happy to address any additional questions I had. Would definitely recommend and use them again.

Bene Walters
10:47 05 Oct 20

I requested Harding to provide a valuation for a lease extension. Albert Wellington was in charge of my property and he was extremely professional and helpful in addressing all my concerns. I would recommend him and the company with no hesitation.

Claire Brown
14:17 19 Aug 20

A very efficient, timely and thorough service for us, as we go through the house buying process. I’d definitely use them again.

Nicholas R.
10:05 23 Jul 20

Very satisfied with service. Report was delivered promptly and provided the information we needed.

Richard Denison Gay
14:49 02 Jun 20

Excellent service; professional, helpful, communicative and courteous as well as relatively quick. I would highly recommend.

Marianna Ciampa
14:25 30 Jan 20

Very efficient and professional. I had my survey few months ago before buying my house and I am still following the advice from the survey to fix and repair what needed. I dealt with Scott Ingham and I think he worked very accurately and checked everything very carefully. Highly recommended.

Amel Ahmed
16:15 13 Nov 19

Needed a valuation for a property purchase and can honestly say the service was 1st class from start to finish. Queries were dealt with promptly and followed up via telephone to make sure I was happy with the responses.The team are extremely knowledgeable.Thank you Kate, Albert, David and the rest of the team I will definitely use the company again.

Millie Jones
16:07 30 Oct 19

Harding’s were great – very responsive, gave a very clear and detailed report and were happy to run through their comments with me over the phone.

Emma Goldschmidt
16:21 01 Oct 19

Brilliant thorough service!

Jennifer Smith
11:12 30 Aug 19

Harry Coaker
09:46 22 Aug 19

Dealt with James Brook, very efficient and professional, James had the report sent out to us within 24hrs. would highly recommend.

Karen Royal
21:33 14 Aug 19

David Good
10:34 20 Jul 19

Harding Chartered Surveyors are a very professional business who handled a challenging task for us with ease. I highly recommend them and will be using their services again.

Karen Ng
22:30 01 Jul 19

Very efficient service and very detailed report. We are very satisfied.

Lily Kwong
10:38 24 Jun 19

Really quick turn around and professional service.

Sue Hodgkins
16:42 20 Jun 19

Neill Ghosh
14:22 11 Jun 19

Have used for years and always been very happy. Competitive on service and always good on deadlines and quality. Recommended.

tom binks
17:56 09 Apr 19

Kevin Loughlin
20:27 28 Mar 19

The surveyor turned up on time as planned to survey the roof, both inside and out, then was happy to discuss it all with us afterwards. Bit tricky in high winds. Report arrived 2 days later, just what we needed. Professional and thorough. Recommended.

Jon Brennan
09:44 01 Mar 19

Quick, responsive and very thorough. Would definitely recommend Hardings to others, and will come back to them the next time I need a survey completed.

Abi and Andy La Fontaine
20:57 20 Feb 19

Quick, efficient and excellent service. Came as a recommendation from a friend and we’d happily recommend too.

Bradley Roth
01:56 16 Feb 19

Giulio Pepe
16:25 16 Dec 18

Thorough and professional surveyors. Very happy with their service. Highly recommended.

Margaret Rowley
16:09 03 Dec 18

Simon Wilson
15:54 10 Nov 18

Good, thorough, and promptly scheduled homebuyer survey in Fulham. The surveyor called me and explained everything clearly.

Daniel Vernazza
10:41 29 Apr 18

I highly recommend David. Very good technical knowledge. He was always available for our questions, which included a detailed call on the same day as the survey. The written survey report was clear, detailed and included pictures and estimates of the cost of repairs.

James Palairet
11:16 09 Jan 18

David gave us a fantastic service and has been a huge help during our property purchase process. We have had 2 surveys carried out, both of which were arranged very promptly. Thorough and extremely useful telephone calls and full written reports were received shortly afterwards. David’s reports and advice have been invaluable to us.

Sarah Dixon
14:13 08 Jan 18

I have worked with David and his team as a buying agent for many years now. The service they offer is an excellent one, timely with a commonsensical approach. I would recommend them to anyone.

William Sharples
08:57 05 Oct 17

James provided a very professional and thorough service, highly recommended.

Elif Erdine
14:30 04 Oct 17

Very experienced firm and friendly staff. Highly recommended.

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