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Because we must ensure a common approach to valuing all domestic
properties for council tax, we must make a number of standard assumptions
about your property.
The main assumptions that we must make when deciding the price
a dwelling would have sold for on 1 April 1991 in England, 1 April 2003 in Wales, are as follows:
- that the sale was with vacant possession;
- that the interest sold was freehold except for flats when a
lease for 99 years at a nominal rent has to be assumed (The actual
lease term is ignored);
- that the dwelling had no potential for any building work or
other development requiring planning permission;
- that the size, layout, and character of the dwelling as well
as its locality must be considered as they actually existed at
1 April 1993 (2003 in Wales) or, depending on the circumstances, a later date;
- that the dwelling (and any common parts such as an entrance
or hallway shared with other dwellings) was in a 'state of reasonable
repair'.
It is important to emphasise that we must, by law, make these 'assumptions'
in order to ensure a common approach to valuing properties for council
tax.
For example, two identical flats within a purpose built block may
have different lease terms. Whilst one flat may have 15 years remaining
on its lease, another may have 40 years remaining. An identical
flat in a nearby block may have an unexpired lease term of 110 years.
However, for council tax purposes, all the flats will be valued
as though they are held on a 99 year lease.
This approach ensures that similar properties within the same area
are not placed in various different council tax bands.
Likewise, if the sale price of a property sold with a 'sitting
tenant' is less than that of its identical neighbours, it does not
mean that the property should be placed in a lower council tax band.
This is because we must assume that the sale was with 'vacant possession'.
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