LANDS TRIBUNAL FOR NORTHERN IRELAND
LANDS TRIBUNAL AND COMPENSATION ACT (NORTHERN IRELAND) 1964
IN THE MATTER OF AN APPLICATION
R/17/1990
HENRY LOUGHRAN AND SHEILA LOUGHRAN - APPLICANTS
NO RESPONDENT
Lands Tribunal for Northern Ireland - Mr A L Jacobson FRICS
Armagh - 7th August 1990 and 14th September 1990
This was a reference by the Applicants under Section 24 of the Leasehold (Enlargement
and Extension) Act (Northern Ireland) 1971 ("the 1971 Act"). The Applicants held premises
known as No 73 Main Street, Keady, Co Armagh under an Assignment dated 30 th
December 1978 of an Indenture of Lease dated 6 th March 1911 ("the 1911 Lease") between
McArdle Moore & Co Ltd of the one part and John Campbell of the other part. The 1911
Lease was for 90 years from 1st February 1911 subject to an annual ground rent of £21, but
the Assignment was made primarily liable for an annual ground rent of £2.
McArdle Moore & Co Ltd held the premises (together with adjoining premises) under Lease
for 99 years from 1st March 1905 subject to an annual ground rent of £33 (John McClelland
to McArdle Moore and Co Ltd).
McArdle Moore and Co Ltd, being the Applicants' immediate lessors had agreed by letter of
12th October 1989 by their solicitors (Messrs McDonough and Matthews) to "dispose of their
interest in the premises for £50.00 together with costs".
The superior landlords could not be traced. Mr David McBrien of Counsel called Mr Henry
Loughran and Mr Conor Patrick Mallon BSc (Est Man) ARICS to give evidence. Affidavit
evidence sworn by Mrs Julie McBrien BA (of Messrs
Solicitors) was also submitted.
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Mallon
Begley and McBrien,
That affidavit showed the detailed enquiries made by the solicitor to elicit the whereabouts
of the superior lessors (or their heirs or assigns) and included:-
(a)
Notice of Intention to acquire the Fee Simple served on the Immediate Lessor (dated
26th March 1987).
(b)
Notice Requiring information (dated 26th March 1987) served on the Immediate
Lessor.
(c)
Certified copy of Probate of the last will and testament of John
McClelland
(Deceased - Obit 3rd July 1913).
(d)
Enquiries made of all Solicitors (or their Firms) whose names appear on the earliest
title deeds.
(e)
Enquiries made of the Law Society for the names of the successors of any law firms
(as above in (d)) which no longer practice.
(f)
Only reply from law firms viz Messrs Cleaver Fulton & Rankin by letter dated 3 rd
March 1988 stating that to the best of their knowledge Miss
Alice McClelland and
Miss Eve McClelland (daughters of John McClelland) are both deceased; and that
there are no living descendants of those persons.
(g)
Negative Hand Search in the Registry of Deeds.
(h)
Negative Hand Search in the Dublin Deeds Registry Office.
(i)
Copies of advertisements in two local papers from which there were no replies.
Mr Loughran testified that No 73 Main Street is his and his wife's sole residence; that they
have lived in the house continuously since the purchase in 1978 and that no business is
carried on in the house.
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Mr Mallon (Associate of Best Property Services) testified that the premises were a twostoreyed mid-terraced house of approximate gross external floor area of 1,195 square feet.
It was situated on a small site (appreciably smaller that the statutory maximum of 2 acres 1
rood 1,070 square yards). The house contained sitting room, living room and kitchen on
the ground floor; three bedrooms and bathroom/wc on the first floor. In recent years it had
been modernised and extended and solid fuel central heating had been installed. He spoke
to a valuation as follows:-
First 11 years
Rent Reserved:- £2 per annum.
Nominal £ 10.00
Remainder
Standing House Value
£20,000.00
Land Apportionment
8%
Capital Value of Site
£ 1,600.00
PV of £1 in 11 years @ 11%
0.317
£ 507.20
say
TOTAL
£510.00
£520.00
He supported the Standing House Value of £20,000 with three comparables viz:-
No 59 Kinelowen Street, Keady (otherwise known as Main Street).
Sold: June 1989 @ £12,000 - not modernised or extended.
No 74 Kinelowen Street
Sold:
December 1989 @ £22,000 - modernised, extended and with oil fired central
heating. Rear access.
No 90 Kinelowen Street
Sold:
June 1990 @ £22,000 - modernised, extended and with oil fired central heating.
Rear access.
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At a subsequent hearing it was explained that an error had occurred - under Section 14 of
the 1971 Act the purchase price has to be assessed at the date on which the notice of
intention to acquire the fee simple was served. That date was 25th March 1987 at which
date there was still 14 years less 54 days prior to the end of the sub-lease on 1st February
2001 (ie 90 years from 1st February 1911).
Mr Mallon accordingly spoke to an amended valuation as follows:-
First 14 years
Rent reserved £2 per annum
Nominal
£ 10.00
Remainder
Standing House Value
£20,000
Land Apportionment
8%
£ 1,600
PV of £1 in 14 years @ 11%
0.232
£371.20
Total
£381.20
say
£380.00
DECISION
In the application to the Lands Tribunal a number of determinations were sought viz:-
(a)
"that the applicants may be entitled to acquire the freehold reversion in the
premises."
The Tribunal is satisfied that on the factual evidence given by Mr Loughran that the
Applicants satisfy the requirements of Section 1(3) of the 1971 Act.
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(b)
"that a person be appointed to act in lieu of all parties (except the immediate lessor)
for the purpose of the said acquisition."
Under Section 5(2) of the 1971 Act where a person statutorily required to join in
conveying the fee simple in land is unascertained the Lands
Tribunal may appoint
an officer of the Tribunal to execute such conveyance. Consequently the Tribunal
appoints the Registrar of the Northern Ireland Lands Tribunal to execute such
conveyance.
(c)
"that the appropriate purchase price be determined."
The Tribunal, because of the ex-parte nature of this application, tested the evidence
of the expert witness with some technical questions. The Tribunal after external
inspection, is satisfied with all matters in Mr Mallon's expert evidence except the
standing house value which the Tribunal estimates at £22,000 and the land
apportionment which should be 10%.
The valuation becomes, therefore:-
First 14 years
Ground Rent £2 per annum
Nominal
£10
Reversion
Standing House Value
£22,000
Land apportionment
Capital Value of Site
PV of £1 in 14 years @ 11%
10%
£ 2,200
0.232 say
Total
(d)
£520.00
"how the said purchase price be divided amongst the superior interests."
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£510.00
It seems probable that there was an owner of a Fee Farm Grant and a Fee
Simple
Owner but no evidence has been discovered of either or both. Additionally the one
superior lessor discovered is deceased as is his wife and all his issue. Without
further facts it is impossible for the Lands
Tribunal to determine any such division if
required. However the Immediate Lessor, Messrs McArdle Moore and Co Ltd have
agreed to accept £50 for the leasehold interest owned by the Company.
(e)
"any other matter which is required to be considered under the Leasehold
(Enlargement and Extension) Act (Northern Ireland) 1971."
No other matter was drawn to the attention of the Lands Tribunal nor is there any
matter that the Tribunal itself considers is required.
The Tribunal having fixed the purchase price at £520 (Five hundred and Twenty pounds)
under Section 5(5) of the 1971 Act directs that £470 is to be paid into the Supreme Court of
Northern Ireland before the execution of the conveyance and Messrs McArdle Moore and
Co Ltd be paid £50.
The Applicants' costs to be taxed under Schedule 2 of the Legal Aid Rules.
ORDERS ACCORDINGLY
Mr A L Jacobson FRICS
2nd October 1990
LANDS TRIBUNAL FOR NORTHERN IRELAND
Appearances:-
Mr David McBrien of Counsel (instructed by Messrs Mallon Begley and McBrien,
Solicitors) for the Applicants.
No Respondent.
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