“Inferior Location” no reason to increase deferment rate

A decision of the Leasehold Valuation Tribunal (LVT) concerning the premium payable for a new lease on a flat in Birmingham which departed from the established principles of the Sportelli decision has been successfully appealed by Midlands Freeholds Ltd.

The LVT had applied a deferment rate of 6%, “...expressly based on the fact the the location of the [flat] was less attractive than the one in Kelton Court and was nothing to do with the question of additional management responsibilities” which did not apply to this building. The LVT’s decision was reversed and a deferment rate of 5.75% applied.