Part 11Change of landlord: secure tenants
130Market value of eligible house
1
It is for the local authority landlord to instruct either of the following to determine the market value of an eligible house—
a
the district valuer, or
b
a qualified valuer nominated by the local authority landlord and accepted by the applicant.
2
In determining the market value of an eligible house, the valuer must have regard to the price which the house would realise if sold on the open market by a willing seller, with the following assumptions—
a
that it was sold on the day on which the application to acquire the house was made,
b
that it was sold subject to the tenancy held by the qualifying tenant but otherwise with vacant possession,
c
that it was to be conveyed with the same right and subject to the same burdens as would apply to an acquisition under this Part,
d
that the only prospective acquirers were the persons who were approved persons on the date on which the application was made, and
e
that the applicant would, within a reasonable period, carry out such works as are reasonably necessary to put the house into the state of repair required by the local authority landlord’s repairing obligations.
3
Where a valuer determines that the house would not realise any price if offered for sale in accordance with subsection (2) that price may be taken to be—
a
a negative value equal to the amount which would require to be paid to an approved person in order that the approved person would willingly acquire the house, or
b
where an approved person would willingly acquire the house for no consideration, nil,
and the house’s market value may accordingly be determined to be a negative value or nil.
4
Where market value is determined to be a negative value or nil—
a
the reference in section 129 to selling the house is to be read as a reference to disposing of it, and
b
where the market value is determined to be a negative value, the obligation to pay falls on the local authority landlord.