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Locked equity
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The problem with council regenerations is that they often get delayed and delayed, then modified, then scrapped. In the meantime, council tenants moving out are not replaced and empty properties are boarded up. The remaining properties become run down and the market value of privately owned properties falls. At this point the need for regeneration becomes urgent, council tenants are more willing to be moved away and private tenants are left isolated. Your market value (+10%) is then low, but you have little option but to sell at the reduced price.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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SE17 is Walworth, inner-city London just south of Elephant & Castle. I have an inkling that I might know which estate the property is on...Where is se17? I know someone who has just done the exact same thing as you. HOWEVER you glibly, stated that the council will pay market rate plus 10%? What happens if when the council wants to compulsory buy the flat its only worth 35k or 40k? you could be left with rather a large debt, rather than any equity...which would be a bad thing. Anyone else got any knowledge of compulsory purchase?
Operation Get in Shape
MURPHY'S NO MORE PIES CLUB MEMBER #1240 -
Hi everyone.
There is no question of compulsory purchase. All leaseholders on the estate have an agreement documented with the council that the property market value +10% will be paid. So dont think there will be much problem. For interest, the name of the estate is Aylesbury and u can check southwark council website for details. The regeneration will take place in 3 phases. The first phase has already been awarded to the building contractors.0 -
here is your problem ......if your house price drops like they are at the moment and in three years time your flat is only worth £50,000 then in three years thats all you will get plus the 10%,,so your future depends on a falling market.. risingIt is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
Regeneration: ethnic cleansing by a different name
Take a poor person in poor housing, worth £50k
Compulsory purchase that from them
Regenerate the area by building shiny new flats
Put those on the market at £200-300k (or more)
Where did the poor people go to live ....?0 -
PasturesNew wrote: »Regeneration: ethnic cleansing by a different name
Take a poor person in poor housing, worth £50k
Compulsory purchase that from them
Regenerate the area by building shiny new flats
Put those on the market at £200-300k (or more)
Where did the poor people go to live ....?
Regeneration can often mean council estates. Ship the tenants out, do up the area. Tidy up the low rise blocks, demolish the high rise and replace with little houses. Estate looks lovely. Then move the same or different tenants in and hopefully you have a new estate that gives the tenants pride in their homes.
The RTB screwed this up slightly, hence the need to buy back the privately owned homes before the area can be improved.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Hi everyone.
There is no question of compulsory purchase. All leaseholders on the estate have an agreement documented with the council that the property market value +10% will be paid. So dont think there will be much problem. For interest, the name of the estate is Aylesbury and u can check southwark council website for details. The regeneration will take place in 3 phases. The first phase has already been awarded to the building contractors.
has the market value been agreed... if not and it is to be assessed nearer the time you could be in real trouble.0 -
Yes, but the RTB tenant can't buy back in again.Regeneration can often mean council estates. Ship the tenants out, do up the area. Tidy up the low rise blocks, demolish the high rise and replace with little houses. Estate looks lovely. Then move the same or different tenants in and hopefully you have a new estate that gives the tenants pride in their homes.
The RTB screwed this up slightly, hence the need to buy back the privately owned homes before the area can be improved.
Even if there was a space, they'd not have the money for it.
They're sent off like shabby bag people ... out of sight.0
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