The Court of Appeal has granted permission for an appeal to be heard in the case of Mundy v The Trustees of the Sloane Stanley Estate.
The Mundy case should interest every leaseholder and especially those with leases under 80 years, as if the Mundy decision is not overturned millions of people will have thousands of pounds wiped off the value of their property.
The case is being brought by chartered surveyor james Wyatt, of Parthenia Valuations, whose mathematical model challenges those commissioned by the country’s largest and most powerful freeholders.
The Parthenia model calculates lease extension costs using thousands of flat and house sales, and has been extensively peer reviewed.
The Mundy case revealed the graphs relied upon by freeholders have no market evidence or robust methodology and significantly overvalue the freeholders’ interest. This has meant for the last 20 years leaseholders may have been overpaying by up to 50 per cent for their lease extensions and freeholds.
This overpayment amounts to hundreds of millions of pounds per annum from leaseholders to freeholders.
The case has been extensively reported on LKP here, and raised in Parliament and in the media, such as the Financial Times. Sir Peter Bottomley has called on the Mundy ruling to be reversed “by statute if necessary”.
The Government in the recent white paper has promised to act and therefore we recommend all leaseholders write to their MPs and ask the Government to support Mr Mundy in the appeal, as it is in the public interest.