Negotiating with council - pre CPO

CharlotteMKD

hello, I wondered please if anyone has any knowledge or advice about negotiating with the council beforehand a CPO is granted and /or knows anything about what responsibilities local authorities have to vulnerable people in the circumstances?

My Mum suffers from severe mental illnesse and I am acting on her behalf as the council has earmarked for demolition the block where she owns the leasehold to a maisonette. The demolition is part of a big regeneration project and we have a number of concerns about the council approach. Firstly they have let the block get completely run down on the exterior and communal areas for years despite occupiers paying maintenance fees, secondly what they have offered other owners as market value is nowhere near what is needed to buy another property in the area and thirdly they are proceeding with instruisve work to the pavement and road outside her maisonette without even giving her warning. She is still a couple of years off pension age and her only income is disability support, so  I have started looking into me getting a second mortgage to make up the shortfall for what she would need to buy somewhere else but there is a good chance the lenders won't go for this and I would be quite stretched. 

It does not appear the council have the CPO yet but we just want to agree a sum on her behalf  that's fair and will allow her to still be a home owner and live near her family and main carers. Any advice, thoughts, negotiating tips hugely appreciated. 

deannagone

It differs from Council to council and it sounds like you are still early in the process if the CPO hasn't been processed yet.  Hopefully more options for your mother will be discussed.  Could she go for shared ownership - a lot of people who are having their property CP'd don't get enough money to buy another place and have to go for shared ownership properties?  It doesn't seem fair but it does seem to be how it works.  If that isn't a possibility I suppose she will have to look into rented social housing.  Or maybe the threat of that will make the council more amenable to helping her.

davidmcn

Not an expert, but as far as I'm aware an actual CPO includes your reasonable surveyors' fees to negotiate it on your behalf, so I'd be pushing for that (or at least getting some initial advice). Unfortunately the market value is just meant to be the market value of the property in question (ignoring the fact it's going to be demolished), which isn't necessarily going to be enough to buy something in the area, and can legitimately take into account that it was already rundown or of defective/unmortgageable build etc.

lincroft1710

If there is no CPO there is no point negotiating as property prices could rise or fall between now and the CPO being issued. However a council can be asked to acquire a property on CPO terms by serving them with a Blight Notice. Only resident freeholders and leaseholders with at least three years remaining on their lease can do this. Landlords and owners of empty properties cannot

princeofpounds

The purchasing authority will need to fund a specialist surveyor and solicitor to value and argue your case. There are lots of them online. You should have an initial discussion with a few of them, try to understand when to engage them, what they do, and how to get those costs funded. 

Once you have retained one, you will be able to cover all these issues you have.

https://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/compulsory-purchase-orders-what-you-need-to-know/#:~:text=Compulsory Purchase Orders (CPOs) allow,the “greater public good”.&text=When a Compulsory Purchase Order,CANNOT force you to sell.

https://www.burges-salmon.com/news-and-insight/legal-updates/what-should-you-do-when-faced-with-a-compulsory-purchase-order/

Slithery

Why the new thread?

CharlotteMKD

davidmcn said:

Not an expert, but as far as I'm aware an actual CPO includes your reasonable surveyors' fees to negotiate it on your behalf, so I'd be pushing for that (or at least getting some initial advice). Unfortunately the market value is just meant to be the market value of the property in question (ignoring the fact it's going to be demolished), which isn't necessarily going to be enough to buy something in the area, and can legitimately take into account that it was already rundown or of defective/unmortgageable build etc.

Hi David thanks for your comment. I have spoken to a surveyor this week who they council have said they will pay to do a valuation, but the surveyor has confirmed that they only negotiate the market value, not anything negotiations beyond that. While we are absolutely not expecting my Mum to be better off from this we also dont want her to be worse off, so want to negotiate enough from the council for her to be able to buy an equivalent (or to be honest any livable property) in the area. I have been told a couple of times that council offers at the earlier stages before a CPO is granted can be more generous if it means they can progress quicker without the need for a lengthy drawn out process obtaining a CPO, which could delay the works. This is really our only chance of my mum being able to get what we think would be a fair deal but as you say is at odds with the standard offer of market value.

CharlotteMKD

deannagone said:

It differs from Council to council and it sounds like you are still early in the process if the CPO hasn't been processed yet.  Hopefully more options for your mother will be discussed.  Could she go for shared ownership - a lot of people who are having their property CP'd don't get enough money to buy another place and have to go for shared ownership properties?  It doesn't seem fair but it does seem to be how it works.  If that isn't a possibility I suppose she will have to look into rented social housing.  Or maybe the threat of that will make the council more amenable to helping her.

Thanks for your comment @deannagone and the shared ownership suggestion, this isnt something I'd looked at but definitely will explore it so thanks very much for suggesting. The principle of social housing isn't in itself one we would be against but the council have said themselves that because my Mum would still be in receipet of a lump sum from the sale, she would then only become eligible for housing benefit once this has been all but run down. So essentially the council would get back the money paid to my Mum for her home. 

CharlotteMKD

princeofpounds said:

The purchasing authority will need to fund a specialist surveyor and solicitor to value and argue your case. There are lots of them online. You should have an initial discussion with a few of them, try to understand when to engage them, what they do, and how to get those costs funded. 

Once you have retained one, you will be able to cover all these issues you have.

https://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/compulsory-purchase-orders-what-you-need-to-know/#:~:text=Compulsory Purchase Orders (CPOs) allow,the “greater public good”.&text=When a Compulsory Purchase Order,CANNOT force you to sell.

https://www.burges-salmon.com/news-and-insight/legal-updates/what-should-you-do-when-faced-with-a-compulsory-purchase-order/

Hi @prince@princeofpounds thanks very much for your comment and the useful links, I will check those out. I have spoken to a surveyor and a solicitor but they seem to deal with the basic processes of agreeing market value and  processing any sale rather than helping us argue the case for a higher price that we feel is fair and that allows my mum to buy again in the area again. 

Doodlebugs

The compensation payment has to be in line with the compensation code when a CPO is used, which is on the balance of equivalence. You won’t be paid more or less than the current market value of your property at the time the order comes into force and notice is served. They should however, cover a disturbance payment for things like removals, storage if needed on top of that and a home loss payment, provided your mum meets the criteria. So basically anything that is a reasonable additional cost in the house moving process should also be repaid as long as it is evidenced. 

You should be able to appoint a surveyor to act on your behalf and have their reasonable costs covered. Do not go with a company that request a percentage of your compensation, the council will not necessarily cover that whole amount and you could end up having to pay the balance. They should also pay your legal fees for the sale and onward purchase too. 

princeofpounds

CharlotteMKD said:

princeofpounds said:

The purchasing authority will need to fund a specialist surveyor and solicitor to value and argue your case. There are lots of them online. You should have an initial discussion with a few of them, try to understand when to engage them, what they do, and how to get those costs funded. 

Once you have retained one, you will be able to cover all these issues you have.

https://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/compulsory-purchase-orders-what-you-need-to-know/#:~:text=Compulsory Purchase Orders (CPOs) allow,the “greater public good”.&text=When a Compulsory Purchase Order,CANNOT force you to sell.

https://www.burges-salmon.com/news-and-insight/legal-updates/what-should-you-do-when-faced-with-a-compulsory-purchase-order/

Hi @prince@princeofpounds thanks very much for your comment and the useful links, I will check those out. I have spoken to a surveyor and a solicitor but they seem to deal with the basic processes of agreeing market value and  processing any sale rather than helping us argue the case for a higher price that we feel is fair and that allows my mum to buy again in the area again. 

Speak to more then. Better to speak to one that wasn't recommended by the council. Personally I would speak to at least three, and if that is what you are worried about, discuss it with them. There are many, many more links on google (or whatever your favourite search engine is), not hard to find.

However, there are limits to 'arguing a case'. What you are due is that market value plus a little bit extra. If your house is the cheapest in the whole area, there's no guarantee that you will be able to buy something more expensive.

Agreeing a value and processing the sale is pretty much all that needs to happen; that's why they focus on it. But I understand your need to feel like you aren't getting ripped off.