Compulsory purchase pending - any tips? Any DOs and DON'ts? Legal firms to recommend?

gingercordial

E22 wrote: »

I think I can claim the stamp duty arising from buying a replacement property.

Can you? There's a relief for the local authority/developer who is buying your property, so they don't have to pay SDLT. I am not sure there is one that will cover you buying a replacement property with the cash they give you.

Worth you checking properly anyway so you are sure of your position.

E22

Absolutely! Which is why I suppose I need a surveyor to negotiate all of this!

moneyistooshorttomention

daveyjp wrote: »

You don't need a legal firm, you need a surveyor well versed in CPO procedures. Its a valid cost which you can claim from the acquiring authority.

Its not that complicated as it is governed by well established rules. However do not accept a valuation plus X%, its lazy and may not recompense you fully.

Well with the combination of:

- London (ie where housing costs are shooting up fast) and buying an equivalent place even a few months later would probably cost a lot more

and

- Rental income that is going to be lost during the "transition period" from owning that property to having another property "up and running" providing rental income

I would say that 107.5% is likely to be WAY WAY down on what OP needs in order not to make a loss (never mind compensated for her time and trouble in swopping properties).

lincroft1710

If you've not read them

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/11487/147639.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/7719/147648.pdf

E22

THIS is exactly what is freaking me out. How do I navigate the situation with minimal losses? The loss of rental income is not compensated to my best knowlege.

I have now had a chat with some surveyors now. I am still unsure about how to deal with a potential period of void. What if neighbouring properties become empty too soon, they become vandalised and my tenants decide to move out earlier!

AdrianC

E22 wrote: »

While I may strongly disagree with the cabinet decision to do so and I really do no wish to loose my very well located flat, I understand that I will need to deal with this somehow.

There really is no point in attempting to fight it. There shouldn't even be any emotional involvement - it's not as if it's your home - it's purely a business asset. Just try and maximise the return.

As a non-resident leaseholder, neither me, nor my tenants seem to have many rights or guarantees.

Your tenants have all the usual rights surrounding their tenancy - the CPO isn't directly relevant to them. Is there a timescale for the purchase yet? When does any fixed tenancy term expire? Make sure you issue the s21 correctly, at the right time. If you're worried about voids and your tenants departing early, then just agree a price as soon as possible, and make sure you're in the earlier purchases, so you're out quickly and can get on with replacing your income.

Let's be honest, over the long term you can make a MUCH better yield from your investment outside central London, and this is probably as good a point in the bubble cycle to cash in the property anyway.

E22

This is early days - the council does not seem to have much idea of what and when will be happening. They have issued "expression of interest" letters, so they can start planning purchases.
I still have a lot of time on the tenancy agreement. I doubt much will change in a year (we are dealing with the council, eh!).
I agree, this is certainly an opportunity to review the investment possibilities!