Council want to demolish my flat

Bimmermad

Somerset wrote: »

Not necessarily. This thread caught my eye because my mother may be in this situation soon. She bought/lives in a council block on a council estate. The estate is being redeveloped and 2/3rd's will be demolished/rebuilt, primarily then private. Her existing block is being left, for how long we don't know. She's in central London, and no joke, if she has to purchase an alternate in the immediate area, you can add a zero to the end of the final price.


Like the OP there is no CPO in place, and I can't see that they could achieve one. So I'll follow this thread with interest.

If my property was my primary accommodation then they would have provided me with the option of alternative accommodation to match the value of my property +10%, However since I am not living there I am not eligible for that option.

Bimmermad

princeofpounds wrote: »

Quite often in this situation the first offer you get is not the offer you should push for. I'd be looking into getting legal advice.

7.5% above market value will do little more than cover the costs of the move. That doesn't mean you are going to be rich mind you!

This is what I have heard from others also, logically they can't force me to sell so I am assuming if I hold on until they have settled cases with other leaseholders in the block then they will have no other option but to offer me an irresistible offer as they are also working on a tight deadline due to building a new school to replace the current block of flats.

browneyedbazzi

moneyistooshorttomention wrote: »

End result was = I would need substantially more than the asking price before I could let a Council compulsory purchase it off me and not lose out as a result of that. The statutory few % extra would nowhere near cover that amount of money and wouldn't even cover my costs if I were prepared not to be compensated for my hassle in having to move against my will.

If they are going down the compulsory purchase route then it isn't a matter of you 'letting' them do it or negotiating. If they have a compulsory purchase order then they don't need your consent - it happens whether you like it or not.

Bimmermad

I will look to seek independent legal advice. The borough is in London so wanted to ask if anyone possibly has details of any legal firms that may specialise in this type of case?

Somerset

Bimmermad wrote: »

If my property was my primary accommodation then they would have provided me with the option of alternative accommodation to match the value of my property +10%, However since I am not living there I am not eligible for that option.

I understand, and this doesn't apply to you, but it's not as good as it sounds. For example, my mother has gossiped with other resident's. One of the 'to be knocked block' leaseholder's has been offered circa 400K and has been offered an equivalent flat in a replacement block at circa 900K, so 400K + 10% comes nowhere close. It all depends on the value they place on your's. If there's nothing locally at the same value you're screwed.


If it's not a CPO ( I assume ) surely it all has to be by negotiation ? CPO is the only way they can force it through, without that what happens if you keep saying ''no'' ?

Bimmermad

Somerset wrote: »

I understand, and this doesn't apply to you, but it's not as good as it sounds. For example, my mother has gossiped with other resident's. One of the 'to be knocked block' leaseholder's has been offered circa 400K and has been offered an equivalent flat in a replacement block at circa 900K, so 400K + 10% comes nowhere close. It all depends on the value they place on your's. If there's nothing locally at the same value you're screwed.


If it's not a CPO ( I assume ) surely it all has to be by negotiation ? CPO is the only way they can force it through, without that what happens if you keep saying ''no'' ?

I spoke to one of the neighbours today and they said that they will also being holding off for the best offer when it is more closer to their deadline. Similar accommodation of that size is well over £600k. I will be calling a few legal firms tomorrow to find out more.

Will keep you updated!

willdc1

I could be wrong, but if we're talking about the Aylesbury Estate in Walworth, there'll be plenty of leaseholders in the same position. Plus the council have just been through the same CPO exercise with the Heygate Estate, so there may be some learnings from that to understand what the Heygate leaseholders received?

silvercar

It may seem that holding out as the last one standing gives you great negotiating power, but think about the estate as people leave.

First the council tenants go and their ex- homes are boarded up; then the people who are owners are bought out and all that remains is you, possibly amongst a few flats used as emergency housing, possibly with a few flats occupied illegally by people breaking in, possibly a few squatters, some druggies hanging round? Then the lift breaks and the council won't pay to repair.

Now decide on the then valuation of your property and how much negotiating power you have.

MisterBaxter

There is a statutory compensation process in these circumstances. They are obliged to pay market value, excluding any impact of blight that the demolition notice brings. On top of that you are entitled to 10% of the market value as compensation, if the 10% is less than £4700 then you are entitled to £4700. It is common to start the negotiation process by going in low, offers often increase but there will come a point where potentially a formal CPO becomes more cost effective.

You are under no obligation to accept any offer made to you until such time that form CPO is in place, rather than use a solicitor you are better off appointing an RICS surveyor who specialises in CPO claims, they will assist you in preparing a Heads of Claim and will help you with the negotiation process. My experience is that many solicitors aren't that well versed on the CPO process.

The basic principle as that you should be no worse off than you were before being forcibly bought out, unfortunately that doesn't mean that if you can't get another property for what yours has been valued at you will get any extra money, it just means that you must get current market value, you will also be able to claim for legal fees, removal costs and certain furnishings for example if your old carpets/curtains won't fit your new home then you can include them in the claim. A good surveyor will throw absolutely everything they can in to the claim, if it gets rejected it goes to a tribunal and they can determine what is reasonable, they will also include their fees and any other legal fees In the claim. Don't let the buyers be in the driving seat, if they want to acquire your home then make them work for it and pay you what you are due.

With the housing market moving upwards you may want to hold out on accepting any offers, obviously if you find something that you can afford with the offer they are making then you need to consider moving before the area becomes derelict but if it goes all the way to CPO the value will be as determined on the day they enforce the CPO. As I've said the value must ignore the fact that there is a demolition order in place and that the area may have become derelict because of it so don't worry about the property being devalued for that reason.

It is never nice losing your home but rather than dwell on the painful side of things get yourself clued up and make the best of a bad situation, don't feel insulted by low offers, and don't negotiate on emotion, negotiate on fact and know your rights.

moremore

Very good advice also you may want to have a look at this regarding how the government London Plan

http://www.london.gov.uk/priorities/planning/publications/the-london-plan