The calculation of lease extensions is a hot potato within the Property Management Industry. This area of leasehold practice is likely to undergo some change and improvement over the forthcoming years. Many experts within the industry have offered their opinion in numerous articles throughout 2018.
The case of Mundy tried to challenge the current way of calculating lease extension costs. The outcome of the case was keenly followed in the hope that a new method was adopted (many hoping that a calculation deemed to be more leaseholder friendly and less expensive should be used – The Parthenia Valuations model).
While the court did not adopt the Parthenia model, the Government has asked the Law Commission to look at “the simplification of valuations.”