Compulsory purchase order

Wulfrune

Hello, I was wondering if someone might be able to advise me here.

There is talk that in the not too distant future that our local council may want to serve us with compulsory purchase order and knock down the block of maisonettes that we live in and to which we're currently leaseholders.
I have heard may bad things about the CPO's can anyone tell me of their experiences? do they have to give you full market value?

My property have just been renovated to meet current standards regarding energy efficiency, new double glazing, new insulation etc, so basically the properties are in very good condition.

Can anyone help me please?

AdrianC

Wulfrune wrote: »

do they have to give you full market value?

Yes.

Why do you think they'll CPO it?
Is the LA the freeholder?
Do they still own most of the flats within it?

Wulfrune

AdrianC wrote: »

Yes.

Why do you think they'll CPO it?
Is the LA the freeholder?
Do they still own most of the flats within it?

Yes and about 50%. All the larger flats are leaseholder, does this make a difference then?

Ohh, and thanks for your reply

Hoploz

Oh what a shame, after you've put all that effort in, how horrible.

If its not yet common knowledge I think I'd be straight down to the local estate agents to get an up to date market valuation, so you can perhaps get a genuine value for sale without it being clouded by this CPO issue. It might help an argument if there is one further down the line, esp if you have added value with you renovations and hard work.

LittleMax

There was a documentary on BBC last month about the leaseholders in Hendon fighting the Council's valuations on their homes. The Estate We're In. It's no longer on i-player but found it on YouTube and well worth watching.

https://www.youtube.com/watch?v=Usa4-W-Bcu0

moneyistooshorttomention

Thanks.

I'll watch that later - and my sympathies are with OP on this - as it's my understanding that people in this situation are paid "market value" for their place. However - I have more than a lurking suspicion that that "market value" is based on what the place is worth after "the word has got out" that the place might be up for redevelopment (ie rather than the real market value).

That's before we start taking into account the costs involved with moving and the compensation people are entitled to for being forced to move against their will.

Stay strong OP - as I've seen people hold out for what they needed/should have before they moved against their will before now.

SensibleSarah

I know a number of people who have been CPO'd and none of them have been offered the 'real' market value of their house. After lengthy negotiations they all managed to get an improved offer, but for 2 people I know this was still not enough to get an equivalent property in reasonable condition in anything but a horrendous area (much worse than the area they both bought in) so they are still fighting it.

Lioness_Twinkletoes

moneyistooshorttomention wrote: »

Thanks.

I'll watch that later - and my sympathies are with OP on this - as it's my understanding that people in this situation are paid "market value" for their place. However - I have more than a lurking suspicion that that "market value" is based on what the place is worth after "the word has got out" that the place might be up for redevelopment (ie rather than the real market value).

That's before we start taking into account the costs involved with moving and the compensation people are entitled to for being forced to move against their will.

Stay strong OP - as I've seen people hold out for what they needed/should have before they moved against their will before now.

That's incorrect information. Once a CPO has been granted (and it takes months, if not years to be granted), LA have to adhere to CPO guidance. This means all homes will be valued independently by an impartial valuer. The home owner is given an offer of market value, plus a copy of the valuation. All home owners can then get their own valuation, the cost of which will be met by the LA on completion of sale. Valuers are instructed to ignore the fact that the area is up for redevelopment (it's called blight) so it makes no difference.

Resident home owners are also offered 10% extra of the market value, non resident 7.5%. This is the home loss payment. They are also offered reasonable 'disbursements', such as onward SDLT, removal costs, the cost of getting post redirected plus, in some cases, cash for carpets and curtains.

I'd advise the OP to speak to the LA and also check to see if plans have been submitted to planning. Realistically, the LA should be talking to the residents if they're planning on redeveloping the area as often residents are offered a new home on the redeveloped site, usually at a very good price.

I can assure you, that BBC programme about the West Hendon development was very biased.

Final word of warning - when the CPO is announced in the local papers, specialist CPO surveying companies will offer to take on your case and make you many thousands more than the council will offer. They'll also claim that the LA has to meet all their costs - that's not always the case. We had one case whereby a leaseholder ended up owing £3k to one of these companies. They were charging £200 per hour and charged for every phone call, letter and e-mail.

It should also be pointed out that even when market value is offered it might mean that a resident can't afford to purchase a similar home in the same area. This is often because the area up for redevelopment is pretty grim already (hence the redevelopment) and other (better) areas just a mile or so down the road are worth considerably more. This is why my LA works with their development partners to get residents a home on the new estate at a price they can afford - even if this is shared ownership.

LittleMax

SensibleSarah wrote: »

I know a number of people who have been CPO'd and none of them have been offered the 'real' market value of their house. After lengthy negotiations they all managed to get an improved offer, but for 2 people I know this was still not enough to get an equivalent property in reasonable condition in anything but a horrendous area (much worse than the area they both bought in) so they are still fighting it.

Sadly this is the case in Hendon. Residents have tried to stick together to fight it but the developers divide and conquer. IMO Barnet Council have acted appallingly.