The Cadogan Estate
The Cadogan Estate spans approximately 90 acres of Chelsea in a fragmentary matter stretching from Knightsbridge to Cheyne Walk on the Embankment. It comprises shops on Sloane Street, King’s Road and Sloane Square (including Peter Jones), various hotels, and large areas of prime residential properties including Chelsea Square, Cadogan Square andCadogan Gardens.
Cluttons advises the Estate on the level of premiums to be charged for lease extensions and the prices payable for freehold interests by enfranchising lessees.
Expert witness service is also provided when agreement on price cannot be agreed with the lessees’ valuer and the matter has to be referred to the Leasehold Valuation Tribunal or the Lands Tribunal.
Cluttons advised the Estate in the recent cases of Arbib v Cadogan and Cadogan v Sportelli, landmark cases which went to the Court of Appeal and established principles relating to the appropriate deferment rate to be applied in leasehold reform valuations, and whether hope value can be claimed separately within the valuation of the landlords’ interest. Whereas for many years a deferment rate of 6% had been used in prime central London, the Estate challenged this, in view of lower interest rates prevailing in the economy generally. The Court of Appeal in Cadogan v Sportelli determined the appropriate deferment rate to be 4.75% for houses and 5% for flats. The case went to the House of Lords on the issue of hope value, and their Lordships determined that an addition for hope value could be claimed in respect of non-participating tenants in collective enfranchisement claims.
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