Receiving Your Offer Letter – Appeals
When you receive your Section 125 Notice – also referred to as your offer letter – it is your responsibility to read it thoroughly and carefully. This is the formal document that indicates the market value of your property, the discount you’re entitled to, the purchase price including the discount, any structural issues identified and additional terms and conditions as required.
In the event that you are dissatisfied with any of the terms or values set out in the letter, you have the right to appeal against them.
For example, if you do not believe that the specified value of your property is fair or accurate, you need to inform your landlord accordingly within three months of the letter’s receipt. At which point, the case will be referred to the district valuer, who will carry out an independent valuation of the property. It’s advisable to provide the district valuer with your reasoning for challenging the valuation, along with any supporting evidence or documentation to back your claim.
The property will be inspected by the district valuer, who will subsequently come up with a value for the property and provide the landlord and the tenant with a report. At this point, the district valuer’s valuation of the property becomes final and legally binding. Irrespective of whether you disagree with it to a greater extent than before, there is now nothing you can do about it. Hence, you need to think very carefully about whether to appeal in the first place.
Contact the experts at UK Property Finance anytime if you have any questions regarding the value of your home.
You will also be contacted by the district valuer if they come up with the same value for your property as your landlord did. Another Section 125 notice (offer letter) will then be sent to you by your landlord. In the event that the district valuer’s valuation is different, a Section 128 notice will be sent to the tenant indicating the new value of the property, discount amount and purchase price accordingly.
From the date of the offer letter you receive, you will have a fresh 12-week period within which to indicate your intent to proceed or cancel the application.
If you are dissatisfied with any other information in your offer letter, your first port of call should be your council. For example, if you are not happy with the conditions of sale, service charges or the size of the discount offered, it’s best to discuss the matter with your council first of all. If you are unable to reach an agreement, you have the right to take legal action, though doing so can be expensive.
To discuss the available options in the event of a dispute with your landlord, reach out to a member of the team at UK Property Finance anytime.
Opting out of the Agreement
Always remember that you are under no obligation to go ahead at this early stage. If you are unable or unwilling to agree to the terms of the offer letter, you must inform your landlord in writing that you have decided not to buy. The application will be terminated, but this will not affect your eligibility to apply again at a later date.