Searches are back....'The CIL does apply to the property.'

GixerKate

ok, what does this actually mean as a purchaser of a new build property?  If my reading is correct its not my problem unless I want to develop the plot myself?  As I have no intention to do this then I don't need to worry?

princeofpounds

Or it means that there is a CIL charge on the property, and you will need to be sure it is satisfied by the developer before you buy the property.

But it's hard to tell as there is limited context provided.

davidmcn

Has your solicitor suggested it's a problem? 

ProDave

It might still apply if you later decide to extend the property.

GixerKate

The email from the solicitor includes the search results and in the summary email it states:

The result of the search revealed the following: 

• Community Infrastructure Levy (“CIL”) is a tool for local authorities to help deliver infrastructure to support the development of the area. Landowners are ultimately liable for the CIL, but anyone involved in a development may take on the liability to pay. The CIL does apply to the property.  The property is located within blah blah blah...

 Everything else on the search appears to be satisfactory.

My understanding of the CIL is very limited but if I understand correctly it only becomes an issue if I decide to develop the plot? 

princeofpounds

Thanks for the extra information. Yes, it sounds like that is what they are saying. Although in my opinion it's still not very well-written. Just be aware the CIL can apply to extensions and outbuildings as well as new development, usually over a certain size.

davidmcn

GixerKate said:

The email from the solicitor includes the search results and in the summary email it states:

The result of the search revealed the following: 

• Community Infrastructure Levy (“CIL”) is a tool for local authorities to help deliver infrastructure to support the development of the area. Landowners are ultimately liable for the CIL, but anyone involved in a development may take on the liability to pay. The CIL does apply to the property.  The property is located within blah blah blah...

 Everything else on the search appears to be satisfactory.

My understanding of the CIL is very limited but if I understand correctly it only becomes an issue if I decide to develop the plot? 

I would suggest you invite your solicitors to clarify their useless advice on this point.

GixerKate

Thanks both!

visi

davidmcn said:

GixerKate said:

The email from the solicitor includes the search results and in the summary email it states:

The result of the search revealed the following: 

• Community Infrastructure Levy (“CIL”) is a tool for local authorities to help deliver infrastructure to support the development of the area. Landowners are ultimately liable for the CIL, but anyone involved in a development may take on the liability to pay. The CIL does apply to the property.  The property is located within blah blah blah...

 Everything else on the search appears to be satisfactory.

My understanding of the CIL is very limited but if I understand correctly it only becomes an issue if I decide to develop the plot? 

I would suggest you invite your solicitors to clarify their useless advice on this point.

I have just had the same communication from our solicitors.  Does anyone know what this is.  I suspect the solicitors don't know but I have asked for clarification.  If I am buying a house built about 8 years ago, does this levy apply to us the new house owners?

Coopsy85

I would double check this, if it is a new build there was probably a CIL liability for the development and you want to be sure that it has been paid in full - if the liable party defaults for any reason and the Council has exhausted all means of getting payment from them, the liability then falls on the individual land owners. 

princeofpounds

This is a bit of a resurrected zombie thread hijack, but I thought I would answer the question as I posted previously and I think the answer I gave was poor (essentially incomplete), so I thought I'd expand on it to help the new poster.

The CIL is basically just a tax on development that councils are now allowed to charge, assuming they have adopted a CIL policy. It is intended to replace a lot of a disguised taxation that was taking place through things like Section 106 agreements anyway (e.g. 'swimming pool contributions' for non-existent swimming pools and similar nonsense) and make it more transparent how much you need to bung the local authority to build. NIMBYs often complain that they don't want new housing as no new infrastructure is being built; now developers and councils can point to payments that are supposed to provide exactly that. Not that it will change NIMBYism much, or deliver much new specific infrastructure.

Anyway, it's relevant in two respects.

1) You are buying a new build property subject to the charge. The developer is supposed to pay the CIL. If they do not, liability can fall on the landowner (i.e. you). So you need to make sure arrangements are in place to pay it.

2) You own a property in an area subject to the charge. If YOU develop, you may be subject to the CIL. Each council will have a CIL schedule that stipulates what they charge. Often things like residential extensions, outbuildings have exemptions, but that's not necessarily the case.