Council want to demolish my flat

Bimmermad

MisterBaxter wrote: »

Until the formal CPO is served and offer is just that 'an offer' there is is no obligation to accept it, obviously things change once a formal CPO is initiated as there is a statutory scheme. I agree there is the expectation that the Council will be held to a high moral standard and where they have the power to forcibly acquire then it also right that there is a legal mechanism to ensure that those on the receiving end are protected but this protection also comes with a balance to the wider public financial interest.

An honest council looking to acquire would let those affected know exactly what their rights are, in the case of the OP they are being offed market value plus 7.5% compensation and are being told that it is a non-negotiable offer, clearly if they had provided each owner with a copy of the CPO guidance booklets they would know that this is less than they will get if it goes all the way to CPO. Before initiating a CPO you have to be able to show that you have tried to negotiate so the negotiations have to start somewhere.

In the case of the OP it looks like they have gone in with a low offer, if they get any takers they have done well for themselves, if the have any sense they will work on the presumption that the first few offers will be rejected so they have given themselves some room to manoeuvre.

Like I said I was playing Devils Advocate, balancing the needs and rights of the individual against the commercial and financially driven approach. As a Council Tax payer I would want my Council to spend not a penny more than they needed to, as a homeowner facing losing my home I would want to screw them for every penny I could.

Further investigations in to this situation shows that the LA has not got a CPO, When asked the guy on the other side he had no idea what it was and that he was new to the job. This is ridiculous, I asked to speak to his senior who was not available. will call again tomorrow to discuss this.

MisterBaxter

Bimmermad wrote: »

Further investigations in to this situation shows that the LA has not got a CPO, When asked the guy on the other side he had no idea what it was and that he was new to the job. This is ridiculous, I asked to speak to his senior who was not available. will call again tomorrow to discuss this.

If they can't agree acquistion through negotiation they will have to apply for a CPO, when preparing for a CPO you have hd to be able to show that you have tried and failed to negotiate a fair and reasonable settlement. If you can't show that you have tried then the CPO could fail. Someone, somewhere will already have an idea about what they will be paying you if it goes all the way to CPO.

Be cheeky and try an FOIA request to and ask them if they have appointed consultants to advise on the acquisition process, the CPO process and whether they have had valuations done for CPO purposes and if so what the valuation says. I know from the first post they have asked for access to do a valuation but they have probably already done a desktop valuation. They may well reject your FOIA request on grounds of commerciality but it's worth a try.

The CPO is almost an option of last resort, it can be expensive and can take a couple of years to reach conclusion.

buglawton

Is the council demolishing as it's done a deal with a developer to redevelop the land and receive large per sq meter fees to the council as a result? Also a chunk of that 7.5% may go on stamp duty and if you are letting, on a rental void. On top of that what about capital gains liability? Will the council cover that?

Bimmermad

MisterBaxter wrote: »

If they can't agree acquistion through negotiation they will have to apply for a CPO, when preparing for a CPO you have hd to be able to show that you have tried and failed to negotiate a fair and reasonable settlement. If you can't show that you have tried then the CPO could fail. Someone, somewhere will already have an idea about what they will be paying you if it goes all the way to CPO.

Be cheeky and try an FOIA request to and ask them if they have appointed consultants to advise on the acquisition process, the CPO process and whether they have had valuations done for CPO purposes and if so what the valuation says. I know from the first post they have asked for access to do a valuation but they have probably already done a desktop valuation. They may well reject your FOIA request on grounds of commerciality but it's worth a try.

The CPO is almost an option of last resort, it can be expensive and can take a couple of years to reach conclusion.

Some really good advice thanks, what is FOIA?? Right sorry for the dumb question I got what it is.

Bimmermad

buglawton wrote: »

Is the council demolishing as it's done a deal with a developer to redevelop the land and receive large per sq meter fees to the council as a result? Also a chunk of that 7.5% may go on stamp duty and if you are letting, on a rental void. On top of that what about capital gains liability? Will the council cover that?

These are some really useful questions that I can ask, thanks.

moremore

Some really good advice thanks, what is FOIA?? Right sorry for the dumb question I got what it is.

Freedom of Information Act. You will need to pay for that information I think it is still £10 and the Council had a certain length of time to send it to you.

Also most council do webcast of their Councillors meeting. Google them on your council website and see your council is doing with your money. Planning ones will also be there.

MisterBaxter

Bimmermad wrote: »

Some really good advice thanks, what is FOIA?? Right sorry for the dumb question I got what it is.

The Council website will probably have a specific contact address for Freedom of Information Act requests if not email the main enquiries address and just FOIA request in the title, they will have 21 days to respond but may decline as the information could cited as being being commercially sensitive. There shouldn't be a charge for the information but they can charge if it takes over a certain number of hours to collate, I think they may also be able to charge for printing costs so ask for the information electronically. If they want to charge they have to tell you in advance and give you an estimate. Be specific with your request, I have had them turned down for being too broad or too vague.

Committee reports and minutes will usually be listed on the Council website but again as this may be commercially sensitive it may have exemptions under the Local Government Act so you won't be able to get copies. Agendas often show the title of confidential items so you will know if it has been to a committee and when.

You may also be able to find a list of recent tenders or orders raised on the Council website, you may be able to work out from this if a consultant has been appointed to act on their behalf.

Bimmermad

So met with the housing associations decant consultant today. He pretty much said everything that was written in the letter. He said that the negotiations are currently being done and that 7.5% was what they are offering. However if negotiations cannot be reached the. They will apply for a CPO. i said that I will not be accepting 7.5%. He then said to wait until the valuation come through then we can discuss a settlement in more detail. He seemed like he agreed with the fact that it was low but also said that that was the final offer by the HA.

They will also pay all cost incurred including stamp duty for the purchase of another property. He was unsure about the capital gains tax and he said he will find out. I will keep you all updated.

They consultants appointed are ARDENT??anyone know or heard of them???

CPOAgent

Hi, have you resolved this? It may be worth taking independent advice from a surveyor to value your property and negotiate on your behalf. It sounds as though you are being offered a standard deal based on Compulosry Purchase legislation. That might be fine except it may well be that is sometimes possible to get more money by leveraging any reluctance for them to use compulsory purchase powers (which are lengthy and expensive to get) as you are an unwilling seller.

It is normal for a council to pay reasonable professional costs including from a surveyor which would be covered in any case if they proceed by compulsory purchase.

For sake of transparency I should advise I am an agent who acts for claimants in compulsory purchase or equivalent cases.

buglawton

Sounds like you were letting the property so there will be serious capital gains tax if it went up a lot in value. Did you ever get that question answered?