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Sloane Stanley Estate v. Mundy [2018] EWCA Civ 35: Court of Appeal Upholds Upper Tribunal Decision Regarding Parthenia Relativity Model

On 24th January 2018 the long awaited judgement in the above appeal was issued. Sadly for leaseholders the Court of Appeal dismissed the appeal and upheld the decision of the Upper tribunal and specifically endorsed the view that the Upper Tribunal was entitled to determine that the Parthenia model of relativity should not be put forward again in other cases. The Court of Appeal ruled that market evidence had to be considered even if there was some influence by graphs, notably the Gerald Eve graph. The Court of Appeal accepted the graphs may be imperfect but currently in instances where market evidence does not exist these must be used to determine valuation.

By way of comment the decision has led to many people suggesting Parliament and Government should legislate to make the process of lease extensions and enfranchisements easier and quicker. Interestingly the 13th Programme of Law Reform which the Law Commission will be reviewing specifically covers residential leasehold. Its report will be awaited with anticipation!

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