Valuations

SurveyorIf you are a resident leaseholder you will need to consider various things. Are you of working age and able to get another mortgage? Do you want to stay locally? How much debt do you have? What is the right move for your family ? The council will have a limited number of re-housing options for resident leaseholders who qualify and you may want to consider shared ownership or shared equity properties if your valuation does not leave you enough money to own outright. Resident leaseholders should visit the re-housing section of this site for an explanation about the councils re-housing assessment process and also read the councils HOME OWNERSHIP GUIDE.

When your phase is active the council will assess the market value of your property and make you a written offer. You may wish to appoint a SURVEYOR who will help you assess the offer and if necessary will enter into a negotiation with the council. There are clear guidelines from both the council and chartered institute of surveyors as to reasonable costs for their work. Please check your surveyor knows and agrees the fees available for representing you.

The value of properties on the Aylesbury estate are generally lower than other non-estate based or brick built properties in SE17.

If you cannot agree on a valuation you can choose to go to the UPPER TRIBUNAL (LANDS CHAMBER). This is a legal process that is independent of the council. A hearing date is set and a member of the Tribunal hears the council’s arguments for their valuation and your surveyor’s arguments for a higher value. The Tribunal then makes a reasoned judgement that is binding on both parties. This is considered a high risk strategy as it is possible for the Tribunal to value the property below the Council’s last offer. The Tribunal may also award costs including those incurred by the Council against the leaseholder and these may be substantial.

Although the council managed to successfully negotiate with many leaseholders, in 2014 two leaseholders went to Tribunal. The decisions of the cases can be found here:

4 bed property, concrete build, Wolverton
1 bed property, concrete build, Bradenham

Compulsory Purchase Order

A compulsory purchase order (CPO) is a legal power that allows certain bodies (including local authorities) which need to obtain land or property to do so without the consent of the owner. It may be enforced if a proposed development is considered one for public betterment; for example, when building motorways where a land owner does not want to sell. Similarly, if councils wish to develop a town centre or an estate, they may issue compulsory purchase orders. The next compulsory purchase hearing for Bradenham, Arklow, Chiltern and Chartridge is scheduled for January 2018.

Whilst the powers are strong, the council must demonstrate that the taking of the land is necessary and that there is a “compelling case in the public interest”. Owners or occupiers can challenge this, and their objections will be heard by an independent planning Inspector at a public inquiry. The Inspector then reports to the Secretary of State who makes the final decision about whether or not to confirm the order. In the case of The Heygate estate the Inspector agreed with the council, that the council’s case for the redevelopment of the Elephant and Castle was a compelling case in the public interest and the Secretary of State confirmed the Order so that the council could enforce it.  Similarly in the case of phase 1a on the Aylesbury Estate a CPO was made and confirmed, and most recently a CPO was made and confirmed following an inquiry in respect of site 7 on the Aylesbury Estate.

The council will want to avoid using the powers of a compulsory purchase order where possible and only do so as a last resort. The powers were used in the case of the Heygate estate. 3 leaseholders remained, of whom one stayed in their property until after the statutory date set for them to vacate, when the confirmed compulsory purchase order entitled sheriff’s officers to attend the property to remove them. The leaseholders were, amongst other grounds, opposing the council’s valuation of their property at the time. In this case the statutory rules meant that the leaseholders had to leave their properties having been paid 90% of the council’s valuation while the valuation issues were negotiated at the Upper Tribunal as described above.   Valuation issues alone are not considered sufficient grounds to make a valid objection to a compulsory purchase order.  It should be pointed out that no such steps needed to be taken on the Aylesbury estate.

Both a CPO and Upper Tribunal are considered last resort. As soon as you know you are in an active phase the council will be working to try and agree a price with you.  Even once a CPO has been made, the Council will continue to negotiate and to seek to agree to purchase your property by agreement and the making of the CPO does not mean that any ongoing negotiations have to stop.

Valuations

Property-Value

The Trust are awaiting up to date valuations to be verified by the council.

Property prices increased from September 2013- April 2014. Although the property market had increased during that period it can also go down. It is worth you checking property websites such as Zoopla to see what the current market trends are. The council are always aware of trends in recent sales and pay close attention to open market and auction sales of Aylesbury estate valuations. If you are entering into a negotiation with the council it is recommended you appoint a Surveyor to help you who should also be aware of market trends and issues affecting values in a regeneration area.

Click here to see recent sales on the open market in SE17.

Council Criteria for Valuations

We know that the valuation of your property is important to you. This information is being provided alongside your valuation, to assist you with understanding how it has been arrived at and some of the factors that influenced it.

These factors are not definitive and have been provided as a guide to inform Aylesbury leaseholders that have applied under the 2013 ‘Early buy back’ scheme. It should be borne in mind property valuation is not solely a matter of adding up positives and negatives. It is also important to note that expenditure on properties rarely, if ever results in a corresponding increase in value.

The factors set out positive and negative examples in value terms and are a general illustration:

Factor Positive Negative
Construction Traditional brick buildings Concrete panel buildings
Mortgage availability Readily available to prospective buyers subject to ability to meet deposit and repayments Not available even when buyer able to meet deposit and repayments
Accommodation The more rooms the better
Size Greater floorspace Limited floorspace – poor layout
Condition Well decorated in neutral colours Poor decoration & maintenance – loud colours – damaged doors etc
Fittings Modern extensive kitchen fittings and modern white sanitary ware Old kitchen fittings – dilapidated fittings – old stained sanitary ware
Modernisation Modern features & well maintained Dated features and poorly maintained
Garden Any The larger the better – should be tidy No garden
Balcony Any None
Aspect Panoramic views of landmarks None
Location What the general market deems desirable What the general market deems undesirable
Service charge The lower the better High and/or with the prospect of substantial capital work payments
Type of block Low-rise High rise subject to views
Lifts (where applicable) Reliable / frequent / secure Unreliable / infrequent / outdated or poor design