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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> John Lyon's Charity v London Sephardi Trust [2017] EWCA Civ 846 (29 June 2017) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2017/846.html Cite as: [2017] HLR 36, [2017] EWCA Civ 846, [2017] RVR 295, [2017] WLR(D) 442, [2018] 1 P &CR 2, [2018] 2 WLR 1016, [2018] QB 1163, [2017] L &TR 30 |
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ON APPEAL FROM THE UPPER TRIBUNAL (LANDS CHAMBER)
HHJ Huskinson and AJ Trott FRICS
LRA1412014, [2015] UKUT 619 (LC)
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE BRIGGS
and
LORD JUSTICE BEAN
____________________
JOHN LYON'S CHARITY |
Appellant |
|
- and - |
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LONDON SEPHARDI TRUST |
Respondent |
____________________
for the Appellant
Philip Rainey QC (instructed by Forsters LLP) for the Respondent
Hearing date : 14 June 2017
____________________
Crown Copyright ©
Lord Justice Briggs :
Introduction
The Facts
The Legislative Framework
"9. Purchase price and costs of enfranchisement, and tenant's right to withdraw
(1) Subject to subsection (2) below, the price payable for a house and premises on a conveyance under section 8 above shall be the amount which at the relevant time the house and premises, if sold in the open market by a willing seller, might be expected to realise on the following assumptions: -
(a) on the assumption that the vendor was selling for an estate in fee simple, subject to the tenancy but on the assumption that this Part of this Act conferred no right to acquire the freehold, and if the tenancy has not been extended under this Part of this Act, on the assumption that (subject to the landlord's rights under section 17 below) it was to be so extended."
""relevant time" means, in relation to a person's claim to acquire the freehold or an extended lease under this Part of this Act, the time when he gives notice in accordance with this Act of his desire to have it".
"(1A) Notwithstanding the foregoing subsection, the price payable for a house and premises, the rateable value of which is above £1,000 in Greater London and £500 elsewhere, on a conveyance under section 8 above, shall be the amount which at the relevant time the house and premises, if sold in the open market by a willing seller, might be expected to realise on the follows assumptions:-
(a) on the assumption that the vendor was selling for an estate in fee simple, subject to the tenancy, but on the assumption that this Part of this Act conferred no right to acquire the freehold."
It was this increase in the rateable value ceiling which brought the property subject to this appeal within the scope of enfranchisement. Thus the first version of the price determination assumptions applicable to this property departed from section 9(1)(a) in its original form by removing the assumption that, if not extended, the original lease was deemed to have been extended.
"23.– Determination of price for leasehold enfranchisement.
(1) In section 9(1A) of the Leasehold Reform Act 1967 (a determination of price payable for enfranchisement of higher value houses), in paragraph (a) (assumption that vendor is selling subject to existing tenancy) after "no right to acquire the freehold" insert "or an extended lease and, where the tenancy has been extended under this Part of this Act, that the tenancy will terminate on the original term date.".
(2) …
(3) The above amendments do not apply –
(a) where the price for enfranchisement has been determined, by agreement or otherwise, before the commencement of this section; or
(b) where the notice under section 8 of the Leasehold Reform Act 1967 (notice of desire to have the freehold) was given before the passing of this Act; or
(c) where notice under section 14 of that Act (notice of desire to have extended lease) was given before 5th March 1986. "
"In subsection (1A)(a), the words "and, where the tenancy has been extended under this Part of this Act, that the tenancy will terminate on the original term date", and"
The insertions by way of amendment of section 9, by section 143(4) of the 2002 Act, consisted of the insertion of a new subsection (1AA) in the following terms:
"(1AA) Where, in a case in which the price payable for a house and premises is to be determined in accordance with subsection (1A) above, the tenancy has been extended under this Part of this Act –
(a) if the relevant time is on or before the original term date, the assumptions set out in that subsection apply as if the tenancy is to terminate on the original term date; and
(b) if the relevant time is after the original term date, the assumptions et out in the paragraphs (a), (c) and (e) of that subsection apply as if the tenancy had terminated on the original term date and the assumption set out in paragraph (b) of that subsection applies as if the words "at the end of the tenancy" were omitted."
"The amendments made to the 1967 Act by sections 138 to 141 and sections 143 to 147 and the repeals in Part 3 of Schedule 1 to this Order, shall not have effect in relation to an application for enfranchisement or an extended lease of a house in respect of which –
(a) a notice was given under section 8 or 14 of the 1967 Act, or
(b) an application was made under section 27 of that Act
before the commencement date."
The Interpretation Act
"Every section of an Act takes effect as a substantive enactment without introductory words."
Section 17, headed "Repeal and re-enactment" provides as follows:
"(1) Where an Act repeals a previous enactment and substitutes provisions for the enactment repealed, the repealed enactment remains in force until the substituted provisions come into force.
(2) Where an Act repeals and re-enacts, with or without modification, a previous enactment then, unless the contrary intention appears, -
(a) any reference in any other enactment to the enactment so repealed shall be construed as a reference to the provision re-enacted;
(b) in so far as any subordinate legislation made or other thing done under the enactment so repealed, or having effect as if so made or done, could have been made or done under the provision re-enacted, it shall have effect as if made or done under that provision."
Analysis
i) The provision previously in section 9(1A)(a) which required an extended lease to be disregarded for the purposes of identifying the termination date was "a previous enactment" within the meaning of section 17(2).
ii) This provision had been repealed and re-enacted by the 2002 Act so that it now appears in section 9(1AA) and (a) of the 1967 Act.
iii) The saving provision in section 23(3)(c) of the 1986 Act was a "reference in any other enactment to the enactment so repealed" within the meaning of section 17(2)(a) of the Interpretation Act.
iv) That there was no contrary intention to displace the result prescribed by section 17(2)(a), namely that the saving provision for the Mosley v Hickman class should be construed as a reference to the re-enacted provision about disregarding the termination of an extended lease now appearing in section 9(1AA) and (a) of the 1967 Act as amended.
Lord Justice Bean:
Lady Justice Arden: