Local authority search reveals house buying under a Compulsary Purchase act

Luckie0333

Hi simple - the 28 year old house we want to buy has been revealed to be under a Compulsory Purchase order. What does this mean for the house.

this was written as the following - New Towns act 1965 - section 7.

it is suggested by sellers lawyers that this is relates to the compulsory purchase of land for what is now Milton Keynes. please what does this mean?!

elverson

Where abouts is the house?

PasturesNew

It means that at some future point the house might, or might not, be compulsorily purchased (and then usually demolished) - typically for a proposed road widening scheme or gentrification/slum clearance and remodelled estate......

How lucky do you feel ....?

For most people the house is untouchable. For most people this would mean a cash purchase. Most buyers would be buying it to rent it out ..... hoping that it wouldn't ever be compulsorily purchased and would end up being worth a lot more than they paid, and/or that when the order went ahead they'd be paid a good price for it (again, making a "profit").

You need to investigate more about what sort of order, when, why, what do locals think, what's likely ..... but I bet your mortgage company will get out the red ink pad and the big stamp saying "NO!".

Davesnave

Luckie0333 wrote: »

Hi simple

Don't call me 'simple!'

As Pastures says, it's usually a gamble for people with cash.

....but not in this case.

Edited to add: There must be hundreds of properties with similar documentation.
Are you using a local solicitor or an internet conveyancer?

rachel230

Why is there a CPO on a 28 year old house? It`s usually for old blocks of flats on estates that are being knocked down phase by phase in order to develop.
I doubt you`ll get a mortgage on a CPO.

Luckie0333

hi guys thanks for replies so far.. having just reread thru some paper work our solicitor asks if still in effect and if not to be removed from register. it was a New Towns act 1965 - Section 7
The sellers lawyers replied to a request for this to be checked and removed by saying the following,
This relates to the compulsary purchase of land for what is now Milton Keynes and we
will not be obtaining a duplicate given the age.
What does this mean - sorry i am definitely simple when comes to this

Luckie0333

thanks for reply - milton keynes it is suggested by sellers lawyers this was to purchase land to make it what it is now, milton keynes. it is a new towns act - 1965.

davidmcn

Right, so it's just an interesting piece of history. Would be nice if your solicitor explained that in the first place rather than leaving you to ask strangers on the internet.

Mossfarr

My friend has a similar order on her house - as have the neighbouring properties. It relates to an old planning application to build a tramway system which was shelved years ago due to lack of funds. They have never completely withdrawn the plans so she simply can not sell her house as nobody will touch it.

Luckie0333

In the neighbour hood there are plenty of houses that have recently been bought/sold tho? According to sellers this is an 1965 new towns act, it was to build milton keynes (house we want built 1989)

moneyistooshorttomention

Mossfarr wrote: »

My friend has a similar order on her house - as have the neighbouring properties. It relates to an old planning application to build a tramway system which was shelved years ago due to lack of funds. They have never completely withdrawn the plans so she simply can not sell her house as nobody will touch it.

It's because of things like that that I would feel very wary personally - ie you never know if someone somewhere sometime will try and resurrect any schemes they had in mind.

One of the (various) reasons I sold my last house was I was told by a longstanding resident of area (some years after I'd bought it) that there had, at one point, been redevelopment plans on the area:eek:. It had been defeated by those living there at that time - but I could see the area was steadily changing from owner-occupied to rented and renters aren't going to fight nearly as hard (if at all) to prevent any resurrection of any development plans the local Council has. Also I knew the attitude of the local Council had changed to one where they have little concern for "locals" living there any longer.

I worked out what plans I knew of that the Council had/has in mind and any logical extensions they might make a few years down the line - and what I knew of re surrounding buildings = a major reason for putting it on the market before anyone even started talking about future plans....:cool:

I guess it all boils down (in any area) to asking oneself "What would I do if I were the planners next year/5 years time/10 years time?" if one is an area that goes in for redevelopment at the drop of a hat. All the more so if one has a Council whose first/foremost/last ways of thinking boil down purely to money.