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Procedure for s.127 valuations

16. Statutory time limits

a. general

S.127 valuations for s.125 HA 1985 purposes must be dealt with expeditiously. S.125(1) requires landlord authorities to serve a notice of the terms of sale, including price, on a tenant within eight weeks for freehold and twelve weeks for leasehold interests. The time limit runs from the date of admission of RTB whether by the landlord authority's s.124 notice or otherwise.

b. case time limit

In view of the statutory time limits and risk of financial sanctions referred to in sub para c below the DV should provide the valuation within twenty working days of receipt of the case in order to allow the landlord authority time for its own processes.

c. tenant's notices of delay

S.124 HA 88 inserts s.153A into the HA 1985. This provides for the service of notices at various procedural stages in RTB applications by a tenant against the landlord authority where the latter does not adhere to the relevant statutory time-limits. This can lead to 100% of rent, rising to 150% over the total period after 12 months' delay, being set off against the eventual sale price so as to penalize the authority for causing delays. In addition the period for repayment of discount on early disposal is reduced for the delay(s).

S.153A provides for the initial notice of delay to be served by the tenant. If the landlord can serve a counter notice within (normally) one month with the required (RTB) notice this will then avoid the sanctions. Urgent requests by an authority which has received such initial notices should be dealt with immediately by DVs carrying out RTB.

d. delays

It is recognised that reports may be delayed where, for example, replies on matters essential to valuation are not received from authorities, or tenants fail to make arrangements for an inspection. Apart from such external reasons, every effort must be made to provide valuations promptly so as to avoid criticism by the authority, tenants, DTLR or the courts.

Valuation of houses (but not flats) should not be held up where a landlord authority occasionally omits to notify the DV of any known structural defects, or defects other than those notified come to light during the DV's inspection. For reporting in such circumstances see para 45(k). See para 29 concerning flats.

e. difficulties

Where an authority imposes its own timetable which is unreasonable in the circumstances, or dispatches cases to the DV late or without full details so that there is insufficient time for the DV to make the report before the statutory time limit expires, the Team Leader should contact the local authority and explain the difficulties being experienced by the DV and try to resolve the matter locally.

f. organisation

The statutory time limit necessitates considerable organisation in local offices so that incoming cases are dealt with efficiently and expeditiously. Where necessary DVs should liaise with landlord authorities. Cases must be registered on the day that they are received in the office and passed on to the valuer who should arrange an inspection immediately thereafter.

g. informal arrangements with authority

Informal arrangements may be made, where this does not lead in practice to additional or abortive work, for a landlord authority to supply tenants' names, addresses and telephone numbers (if any) to a DV so that arrangements can be made to inspect houses and flats prior to the receipt of formal cases, including before RTB has been formally admitted by an authority.

Where a DV adopts this course of action such prior notifications should be registered in advance of receipt of formal requests and should be shown separately on returns of outstanding RTB cases.

h. monitoring

The progress of RTB work for authorities is the responsibility Team Leaders who should monitor the flow of cases where necessary.

i. backlogs

Where a backlog builds up it is the responsibility of Team Leaders to deal with it from their own resources. If Team Leaders consider that they cannot clear a backlog with their own resources, they should consider relinquishment of the work having regard to the effect that a DV's delays may have on an authority due to service of tenant's notices of delay under s.153A HA 1985 (inserted by s.124 HA 88).

17. Information from authority

The DV should have standing arrangements with landlord authorities whereby they provide the DV with:-

a.

Address of the property together with the name of the tenant and telephone number (if any).

b.

Plan of the site where possible. Where the boundaries are not clearly defined or land, buildings and/or rights over land are not contiguous, eg a separate garden, garage or parking space, a plan should normally be insisted upon unless exceptionally, the request contains sufficient details to enable the DV to identify correctly and to value the dwelling to be sold.

In the case of flats it is essential that the full extent of the property to be sold is known, including any areas external to the flat, eg, drying area of which the tenant has exclusive use, and his user rights over common parts.

c.

Date of the service of the tenant's s.122 HA 1985 notice which is the relevant time for valuation.

d.

Conditions which, in the landlord authority's opinion, should be contained in the conveyance or grant.

e.

Tenant's improvements which are to be disregarded under s.127(1)(b).

f.

Whether the landlord or tenant is responsible for internal repairs and decorations in the secure tenancy. In rare instances where the tenant is responsible for external repairs and decoration this should be specified.

g.

If the landlord does not own the freehold or the dwelling is a flat, the length of lease to be granted and the amount of annual ground rent.

h.

Details of any structural defects known to the landlord affecting the house or flat or the building in which it is situated or any other building over which the tenant will have rights under the conveyance or lease which are to be included in the s.125 landlord's notice. (s.125 (4A) inserted by para 3 Sch 5 HPA 86).

i.

The landlord's detailed estimates of any service charges and improvement contributions over the 'reference period' which are to be included in his s.125 notice in accordance with s.125(4) as substituted by s.4(1) HPA 1986 (see para 5).

j.

In the case of flats para 14 Sch 6 HA 1985, as amended by para 41 Sch 5 HPA 1986, sets out the landlord's implied covenants. DVs should be provided with any exclusion from or modification of these covenants.

k.

In the case of flats (and leasehold houses) para 16 Sch 6 HA 1985 sets out the tenant's implied covenant; DVs should be informed of any agreed modification to same.

18. Co-ordination

The responsibility for any necessary co-ordination on values within their own or contiguous areas rests with DVs. Whilst it is envisaged that there is normally sufficient local evidence for DVs to value most dwellings, it is considered that co-ordination is essential for categories and types where individual DVs may have little or no evidence. This would be likely to apply to certain flats, particularly if balcony access, high-rise or system built or prefabricated reinforced concrete dwellings that have been designated as defective under Part XVI HA 1985 and any other types of non-traditional construction.

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