Articles
Valuation
The valuation methods are set out in section 9 of the 1967 Act.
Section 9 of the 1967 Act provides for one of three methods of valuation to determine the price depending on the rateable value of the property. The relevant method of valuation is either that set out in s9 (1) or that set out in s9 (1A) and 9(1C).
These are:
If qualified prior to 1993 (for example can enfranchise without the benefits of later amendments to the legislation) and had a rateable value below £1000 on 31st March 1990, then the valuation is under Section 9(1) – the benefit of this is that marriage value is excluded and the price is restricted to a proportion of site value.
If qualified prior to 1993 but rateable value more than £1000 then the valuation is under 9(1A). That is to say the amount paid is a lump sum for the outstanding ground rent, the present value of the deferred value of the building plus share of the marriage value.
If qualified due to the 1993 Act, (and 1996 or 2002 Acts) then the valuation is under 9(1C) which is basically as 9(1A) but allows compensation for loss to other buildings owned by the landlord.
Where rateable values are marginal there is the ability for these to be altered due to improvements made to a property by the tenant. Under s9 (1B) if a tenant's improvements have caused the rateable value to be increased then under Schedule 8 of the Housing Act 1974 an Applicant may apply to the County Court for the rateable value to be adjusted to a lower rateable value to take account of the improvements.