Shared Ownership staircasing valuation dispute with Housing Association

howardmeer

Hi - would appreciate advice/comments please.

Has anyone had a dispute with their Housing Association over a valuation when trying to staircase?

I have come up against a brick wall with a HA refusing to accept the RICS valuation despite following their instructions (leaseholder has to instruct and pay for valuation and can chose any RICS Member as valuer etc).

Has anyone been in the same situation/dispute with their HA and how was it resolved please? 

Advice/comments welcome please.

deannagone

You have already posted about this situation https://forums.moneysavingexpert.com/discussion/6376091/staircasing-for-nil-valuation-cladding-hangover-advice-please#latest with more specific details.  I think those specific details are necessary for pertinent advice for this specialist area.

howardmeer

deannagone said:

You have already posted about this situation https://forums.moneysavingexpert.com/discussion/6376091/staircasing-for-nil-valuation-cladding-hangover-advice-please#latest with more specific details.  I think those specific details are necessary for pertinent advice for this specialist area.

Fair point, but I am not getting any comments/advice regarding disagreements with HAs over valuations - that is what this thread is for.

There must be Shared Owners out there would have been in dispute with their HA about a valuation (whatever the case may be) and had to go through a process to resolve it - that's what I'm looking for...

The only thing I have seen is a case on the Housing Ombudsman website (I can't post the link here yet) involving 

Torus62 Limited (202100229)

caprikid1

There is a big difference between a valuation dispute and wanting a property for free.

You are not going to get to that position with the assistance of forums, Googling has told you everything you need to know, there is next to no info out there, no existing precedent similar to yours. The only way to move this forward is put your hand in your pocket and lawyer up.

Unless you have had a big inheritance I suspect you don't have the funds to do this on your own, so you will need others.

You may be able to spend £5K with a decent lawyer and at least get a fairly definitive yes or no on the likelihood of an outcome in your favour.

howardmeer

deannagone said:

You have already posted about this situation https://forums.moneysavingexpert.com/discussion/6376091/staircasing-for-nil-valuation-cladding-hangover-advice-please#latest with more specific details.  I think those specific details are necessary for pertinent advice for this specialist area.

Fair point, but I am not getting any comments/advice regarding disagreements with HAs over valuations - that is what this thread is for.

There must be Shared Owners out there would have been in dispute with their HA about a valuation (whatever the case may be) and had to go through a process to resolve it - that's what I'm looking for...

The only thing I have seen is this on the Housing Ombudsman site

 

howardmeer

caprikid1 said:

There is a big difference between a valuation dispute and wanting a property for free.

You are not going to get to that position with the assistance of forums, Googling has told you everything you need to know, there is next to no info out there, no existing precedent similar to yours. The only way to move this forward is put your hand in your pocket and lawyer up.

Unless you have had a big inheritance I suspect you don't have the funds to do this on your own, so you will need others.

You may be able to spend £5K with a decent lawyer and at least get a fairly definitive yes or no on the likelihood of an outcome in your favour.

I disagree - a valuation dispute is a valuation dispute regardless of the amount in dispute. I'm surprised there is no guidance or policy about what to in the situation over a disagreement over a valuation.
I have heard reference to the District Valuer, however after look at that, it is only open to local authorities and other public bodies - HAs are not considered 'public bodies' as they are independent.
Housing Ombudsman says valuation disputes are outside of their remit, but did consider case Torus62 Limited (202100229) [available on HO's website], but again stated it was outside their remit.
On the "lawyering up" point, SO is willing to try that , but obviously wants to explore all non-legal avenues before launching that kind of action.
Also, SO not sure how many others actually continued with their staircasing applications when in receipt of nil valuations - most valuations only last 3-months, so unless the SO actually applied to go with £nil in 2020, they won't be able rely on that valuation now...
Would help to hear from shared owners who had a dispute with their housing association over any level of valuation dispute and how it was finally resolved....
 

MobileSaver

howardmeer said:

caprikid1 said:

There is a big difference between a valuation dispute and wanting a property for free.

in receipt of nil valuations

Isn't there a more fundamental flaw in your plan which is that if the valuation is zero then there is no consideration and so under UK law any contract is null and void? Or is there something else of value that the HA get if they give you the property for free?

howardmeer

MobileSaver said:

howardmeer said:

caprikid1 said:

There is a big difference between a valuation dispute and wanting a property for free.

in receipt of nil valuations

Isn't there a more fundamental flaw in your plan which is that if the valuation is zero then there is no consideration and so under UK law any contract is null and void? Or is there something else of value that the HA get if they give you the property for free?

That is a fair point to make - you'd think you would have to pay 'something', even if it were just £1 to proceed with the transaction.
I think the answer is in the difference between a Deed of Sale (which this would be) and a contractual transaction - like buying a washing machine etc.
Contracts have the consideration requirement you refer to, where as Deeds do not.  I think that's why you can 'gift' property for free (no consideration required) via a deed, but where there is a contract for the transfer to goods (for free or as a gift), lawyers put in the nominal £1 to comply with the law.
Good point, thank you. 

Norman_Castle

howardmeer said:

deannagone said:

You have already posted about this situation https://forums.moneysavingexpert.com/discussion/6376091/staircasing-for-nil-valuation-cladding-hangover-advice-please#latest with more specific details.  I think those specific details are necessary for pertinent advice for this specialist area.

Fair point, but I am not getting any comments/advice regarding disagreements with HAs over valuations - that is what this thread is for.

There must be Shared Owners out there would have been in dispute with their HA about a valuation (whatever the case may be) and had to go through a process to resolve it - that's what I'm looking for...

The zero valuation is based on the fact it couldn't, shouldn't or wouldn't be sold with unresolved cladding problems. It clearly has a value which will be recognised once the cladding problem is resolved.

howardmeer

Norman_Castle said:

howardmeer said:

deannagone said:

You have already posted about this situation https://forums.moneysavingexpert.com/discussion/6376091/staircasing-for-nil-valuation-cladding-hangover-advice-please#latest with more specific details.  I think those specific details are necessary for pertinent advice for this specialist area.

Fair point, but I am not getting any comments/advice regarding disagreements with HAs over valuations - that is what this thread is for.

There must be Shared Owners out there would have been in dispute with their HA about a valuation (whatever the case may be) and had to go through a process to resolve it - that's what I'm looking for...

The zero valuation is based on the fact it couldn't, shouldn't or wouldn't be sold with unresolved cladding problems. It clearly has a value which will be recognised once the cladding problem is resolved.

Yes - once the cladding problem is resolved (whenever that is; remember the surveyor asked the HA that and HA could not give a time frame), the property will have a value, no doubt.
However, the SO lease says the valuation for staircasing is "the value at the time of the valuation and is valid for a maximum of 3-months", so what the value may be after X years when (and "if") the cladding has been resolved, is irrelevant.
What about the re-charging the cost issue? Surely that is a killer for any valuation isn't it?
If you bought a car and Seller told you it had finance on it which if you bought it, you would be liable for, surely you'd ask "How much and when do I have to pay it off?"  If the answer was "Well, I'm not sure, but it could be £100,000s and you could have to pay it tomorrow or in a year, or in five/ten years." you'd probably walk away and ever look back right?
SO applied in March 2020 based on valuation carried out in March 2020.
It must be right that valuation is taken on this date - otherwise people could say, "Well, I'd like to buy/sell now, but as house prices are rising by 10% a year, I want to take the valuation price from 2030".

MobileSaver

howardmeer said:

MobileSaver said:

howardmeer said:

caprikid1 said:

There is a big difference between a valuation dispute and wanting a property for free.

in receipt of nil valuations

Isn't there a more fundamental flaw in your plan which is that if the valuation is zero then there is no consideration and so under UK law any contract is null and void? Or is there something else of value that the HA get if they give you the property for free?

the difference between a Deed of Sale (which this would be) and a contractual transaction

Good point and that's fine if both parties agree but I guess this comes back to can you force another party to execute a Deed of Sale without consideration? I suspect not.

Do you honestly believe the open market value of your property today is zero? If you offered it for sale on these forums would no-one offer you £100 cash for it? If the answer to either of these questions is no then the RICS valuation of nil is manifestly incorrect which would be another reason for the HA to declare the binding clause being null and void.