Developer wants to buy my house

Ashton

Hi

This is the first time I have created a thread and need some advice quite urgently. These forums are always highly useful, so I hope someone can help me.

In 2006 I was approached by a housing association who want to buy my home to redevelop the entire estate on which it is situated. I purchased the house just 3 months earlier.

This has meant that my wife and I have been unable to carry out even moderate home improvements since moving in due to the uncertainty surrounding the completion of the redevelopment and the redevelopment manager at the development company stating that it is best not to.

No contracts or property transfer agreements have been signed, but the proposed new plot has been built (over the road in phase 1 of the redevelopment) and they are carrying out the internal fit out.

In return for our property they have offered us this new home , but frankly I am not sure that the value of new build is adequate, taking into account the property for property value, the restrictions that have been placed upon us with regards home improvement over the last 3.5 years and a value for the hardship and inconvenience that goes along with living through 2 phases of a massive redevelopment over the course of what will have been 5 years once the entire estate is completed.

There seems to be no one out there that can quantify an overall value for this and I need some advice before contracts are signed. I have a wife and 3 baby daughters and want to be sure that we get the best out of this situation.

After all they approached us.

Can anyone advise me or point me in the right direction to get some advice.

I have spoken with solicitors who seem disinclined to get involved as we have suffered no loss as they see it. Surveyors only seem able to give the property value, but with no allowance for hardship etc.

I was thinking of maybe a loss adjuster of arbitrator, but again these matters are not really their sort of business.

Can anyone help, please?

lincroft1710

Housing Assn are not obliged to pay you compensation for living on a redevelopment site. If you bought a private build at entrance to massive new estate, the developer would not entertain any claim for compensation whilst rest of estate was built. You had an opportunity to sell before the development started, but you chose not to do so.

Only a surveyor or EA can advise if your present house is of equal value to one being offered.

What you should ask HA for, is to pay all your moving costs e.g solicitor's fees, actual removal costs, telephone/broadband connection (not rental). Also see if they will turf garden (if not already done) and perhaps pay for carpets if current ones don't fit. Be prepared for an argument over all these, but stand your ground.

Grovester_2

I'm not convinced you are entitled to anyhting. Saying you can't carry out improvements as you may be moving is not worth compenstion IMO.

You'll need to get your property and the one they are offering valued by a surveyor as lincroft has already stated.

Grovester_2

Also do you ahve a mortgage, will they even let you move the mortgage, if the property they offer is of lower value your lender may say no.

g_attrill

I would agree, you have no claim against them any more than you would have for a private person knocking down and rebuilding a house next to yours.

Presumably having your plot would help them maximise the usage of the whole development, so it is of benefit to them, however it's tricky to work out how much they are gaining, and what they should be offering back.

Either way, at a basic level you really just need to be sure that a) the newer house is the same value or more valuable than yours as it stands (don't pay attention to their asking prices!), and b) if, taking everything into account, you would prefer to live in the new house compared to yours.

If it were me, I would be looking to move up a rung on the ladder, eg. if I had a 3-bed semi I would be looking for a decent 4-bed detached. Swapping like-for-like would not seem to be a good deal unless the house is significantly larger or your current place is worn out and has a small garden (if that is the case then I don't know why you are asking here!).

maggie111

From what I understand - 3 months after you bought your house someone offered to buy it off you. For 3.5 years you have been waiting for the sale to go through, for contracts to be signed, or something?

Now they are offering you an "equivalent" property in exchange for yours instead, and you're annoyed at having to wait in the same house, undecorated etc for 3.5 years?

I think, unfortunately, the problem ultimately lies at your door. If I (a private investor) offered to buy your house, promised we'd exchange soon etc - and you did nothing because you were waiting for me... And were left waiting for 3.5 years... Who has the problem here? You. Why is it anything to do with me? Yes it would make me a bad person, but essentially, you're muggins sat around waiting for them to make it happen.

Now I understand they might not have wanted to buy your house until they had some proceeds from stage 1 - but still, whatever verbal promises were thrown your way you still made the ultimate decision not to improve your house. Yes they advised you not to - but I would find you hard pressed to find someone who would tell you "sure it's going to get bulldozed down in the next few years, but why not put a conservatory on?"

I don't think you're in line for any compensation here... If you liked the house being offered, and it's an equivalent - run and take it. If it's a bedroom to small, it's not as nice as another property or whatever your problem is - renegotiate the house. Don't take their offer and then ask for another £50k, because I don't think you'll find anyone who thinks that's ok and that's what your acceptance of the 3.5 years costs.

sunshinetours

Ashton wrote: »

Hi

This is the first time I have created a thread and need some advice quite urgently. These forums are always highly useful, so I hope someone can help me.

In 2006 I was approached by a housing association who want to buy my home to redevelop the entire estate on which it is situated. I purchased the house just 3 months earlier.

This has meant that my wife and I have been unable to carry out even moderate home improvements since moving in due to the uncertainty surrounding the completion of the redevelopment and the redevelopment manager at the development company stating that it is best not to.

No contracts or property transfer agreements have been signed, but the proposed new plot has been built (over the road in phase 1 of the redevelopment) and they are carrying out the internal fit out.

In return for our property they have offered us this new home , but frankly I am not sure that the value of new build is adequate, taking into account the property for property value, the restrictions that have been placed upon us with regards home improvement over the last 3.5 years and a value for the hardship and inconvenience that goes along with living through 2 phases of a massive redevelopment over the course of what will have been 5 years once the entire estate is completed.

There seems to be no one out there that can quantify an overall value for this and I need some advice before contracts are signed. I have a wife and 3 baby daughters and want to be sure that we get the best out of this situation.

After all they approached us.

Can anyone advise me or point me in the right direction to get some advice.

I have spoken with solicitors who seem disinclined to get involved as we have suffered no loss as they see it. Surveyors only seem able to give the property value, but with no allowance for hardship etc.

I was thinking of maybe a loss adjuster of arbitrator, but again these matters are not really their sort of business.

Can anyone help, please?

In fairness I don't think you have stated you are "entitled" to anything and I don't blame you asking for people's opinions. But as others have said, including solicitors and surveyors, you have not really suffered any loss so any figures would be purely speculative.

Just ensure you are happy with value of house you are being offered and ensure it is being kitted out how you you want it to be for the inconvenience of moving when you weren't necessarily planning on doing so.

Just one point to check, is there any chance of a complusory purchase in the future (I presume not) but obviously that would weaken any bargaining position. I am not sure how housing associations work or how much clout they have if the lcoal area needs to meet its new build targets for instance

Providing you come out of it all in a better position I can't see really that you have an awful lot to be unhappy with :beer: