Council want to demolish my flat

MisterBaxter

Booklet 4 of the CPO process details statutory compensation https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/7719/147648.pdf

Ultimately if the Council can't acquire by negotiation they will have to use CPO powers so as an absolute minimum they will have to compensate you in accordance with the statutory scheme. Bear in mind that they will also face extra costs associated with their own fees and there is chance that you can use this as part of your negotiation, it could be cheaper for them to pay you more than the statutory levels if it saves them some in professional and legal fees.

Bimmermad

MisterBaxter wrote: »

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.

Thank you for your valuable advice. Like I mentioned previously I myself am not living in the property therefore I am not bothered about the building being derelict. There are two buildings that are being demolished in the estate to accommodate for a new primary school, however all the other buildings in the estate will remain. I was wondering if you had any contact details for a RICS surveyor that deals with this type of claim?? I am not very clued up with these issues. I will read through the CPO document posted here to see if it makes any sense to me. Initial thoughts are that £4700 is not a huge amount considering all the trouble they will be putting me through. Thank you once again.

moremore

This is happening in North London, perhaps the link will be of help for you. Some people are elderly and purchased their RTB in 80' or 90's. Not good having your home taken away at that age. However hundreds of council properties will have to be demolished in North London due to HS2.

http://www.wearecamden.org/leaseholders/discussions/message-view?message_id=242719

Bimmermad

MisterBaxter wrote: »

Booklet 4 of the CPO process details statutory compensation https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/7719/147648.pdf

Ultimately if the Council can't acquire by negotiation they will have to use CPO powers so as an absolute minimum they will have to compensate you in accordance with the statutory scheme. Bear in mind that they will also face extra costs associated with their own fees and there is chance that you can use this as part of your negotiation, it could be cheaper for them to pay you more than the statutory levels if it saves them some in professional and legal fees.

This sounds like a very logical way of approaching this. I am hoping to find a surveyor who would be able to handle this for me. However I do always like a challenge (time permitting)

Bimmermad

moremore wrote: »

This is happening in North London, perhaps the link will be of help for you. Some people are elderly and purchased their RTB in 80' or 90's. Not good having your home taken away at that age. However hundreds of council properties will have to be demolished in North London due to HS2.

http://www.wearecamden.org/leaseholders/discussions/message-view?message_id=242719

The fact is that as leaseholders the council can enforce to buy back the lease and ultimately push us out. Let's see how many people this thread attracts.

GDB2222

Bimmermad wrote: »

The fact is that as leaseholders the council can enforce to buy back the lease and ultimately push us out. Let's see how many people this thread attracts.

They can only do this under their CPO powers. The fact you're a leaseholder of the council is not relevant.

Get a surveyor specialising in this area to help you. The Council has to pay your reasonable costs, including the cost of the surveyor.

Bimmermad

somethingcorporate wrote: »

This sounds like total pie in the sky. If your place was valued at £170k then you'd only need £170k to get an equivalent place. House moving is hardly prohibitively expensive so looks like you're holding out for £60k+ for the inconvenience - 30+% of the value of the house. The council values this at 7.5%. Personally, I'd suggest the offer of 7.5% is negotiable but think 15-20% as the absolute top amount that is reasonable.

Can they make a purchase compulsory?

Yes they can

MisterBaxter

Bimmermad wrote: »

This sounds like a very logical way of approaching this. I am hoping to find a surveyor who would be able to handle this for me. However I do always like a challenge (time permitting)

I don't know that forum rules allow for recommending professional services but a quick hit on your preferred search engine will throw up a number of firms that specialise in this types of work. Most work for both parties and boast about how much they gained or how much they saved depending on which party they were working for. Just search for Compulsory Purchase Order Sepcialists.

If you don't live in the property but are renting it out you won't get the home loss payment but should receive a payment for loss of investment, you may however have to compensate your tenants for home loss so that is another thing to factor in to you calculations.

Just bear in mind that you will have to pay the surveyors fees until they are agreed, if you agree a price by negotiation then any fees will be included in the settlement figure, there won't be any extra payments. If the Council back out of the project so it never gets to CPO stage you will be responsible for any costs.

Sometimes the best approach is to have a very good idea about what you would be entitled to under CPO using the guidance notes provided, use that as your benchmark and don't agree for anything less than that. If a CPO is served then you can appoint a surveyor knowing that their costs will be covered. If you appoint a surveyor now for outline advice it could cost you a couple of hundred.

BigAunty

This is what happened in Scotland when an owner refused the offer of above market value price for their property and 3 offers of re-housing with a new social housing property in the local area.

Apparently the value offered was trebled from 30k to 90k and was still found unacceptable. Other articles suggest that either her or her legal rep was holding out for £360k. EDIT - locally, the sum of 360k is like someone flogging a flat in a crap estate in zone 6 and buying one in Mayfair.

http://www.bbc.co.uk/news/uk-scotland-glasgow-west-12845408

GDB2222

BigAunty wrote: »

This is what happened in Scotland when an owner refused the offer of above market value price for their property and 3 offers of re-housing with a new social housing property in the local area.

Apparently the value offered was trebled from 30k to 90k and was still found unacceptable. Other articles suggest that either her or her legal rep was holding out for £360k. EDIT - locally, the sum of 360k is like someone flogging a flat in a crap estate in zone 6 and buying one in Mayfair.

http://www.bbc.co.uk/news/uk-scotland-glasgow-west-12845408

I have no clue as to whether the £90k was an above market value price. If it was market value, then I think the £30k initial offer must have been incredibly low, and it was wrong of the council to start that low.