Property on regeneration area - possible Compulsory Purchase Order (CPO)?

[tommygirl3]

Hello All

We are in the process of purchasing an ex-local authority property in Seven Sisters (London Borough of Haringey). The survey passed with flying colours and the searches have come back. Just as I thought everything is all system go, my solicitor mentioned that the searches revealed a possible problem.

Instinctively I wanted to know more. Upon discussion, it emerged that South Tottenham (in Haringey) is under a regeneration are (called a NDC?) and it was declared by the council from June 2003 for a period of 10 years. Whilst this is nice that the council wants to make the area of my prospective purchase a nicer place, one sentence cropped up which gave my solicitor concern.

The searches revealed that the council may seek to apply a Compulsory Purchase Order on properties/land in that area. In essence I was told that it means the council can demolish the block of flats, pay you what they think the flat's worth (solicitor told me that from his exxperience, they always underpay much below the market value).

So whilst the vendor is insistent that they have not heard of the CPO nor had any documentation sent to them by the council, the legal department at the council only responded with saying they are only applying CPOs to derelict and empty properties and industrial land.

Has anyone been through anything like this? What are the possibilitiesof a CPO? Do they just rehouse you? Or are the council going to pay you whatever they want and force you out of your home?

I know it's not desireable to purchase an ex-local authoity flat, however with rising house prices, I won't be able to get a foot on the housing market!

THANKS!

[Sammy Snake]

I bought a house a couple of years ago and it became apparent after about 2 months that it was in a regeneration area. As it was only a possibility and not definate when I bought it, it didn't show up in the searches.

That was Nov 04. Firstly they did a questionaire to ask who lived in the property, any pets, where would you like to live if you had to, how many bedrooms would you want etc. Then they conducted ground surveys to see which houses were built over mine shafts or on marl pits. This has been completed and most of my area seems ok so far. They also surveyed 1 in five houses to get an idea of condition.

Next they help open days to advise the results of the ground survey and to let us know the next step. They commisioned a full survey of every house in the area. This started in August 05 and apparently they should get the results in July as there are some householders who won't allow the surveyors access. Surveyors have told some householders that all seem in good order but at the end of the day, it isn't their desicion whether the houses come down or not.

I was told that they will pay full market value plus 10% for the inconvenience, to cover removal costs and to buy new carpets etc. If you still can't afford another property, they will make grants available to help you buy again. If you still can't afford a new house, they will give an inerest free loan to be repaid when the property is sold. In other word part-ownership except you don't pay rent on the council's share.

As I said, this has been going on two years now and I still don't know whether my house is to be demolished or not but at this rate, I'll still be here in another 5 years at least!

[tommygirl3]

Thanks Sammy Snake! I'm still waiting for a response from the legal side. But I'm only hoping to live there for 3-5 years (until I can afford a 'proper' flat/house).

That's great info and advice. Thank you.

[pravstar]

I live in Haringey, which block of flats is it, if it is the one opposite South Tottenham station and new build development, then possibly there maybe a CPO in place but I can't say that with any conviction. Find out also what the service charges are, I know generally they are pretty steep. The only CPO I could find for N15 online is in the link below

http://www.minutes.haringey.gov.uk/Published/C00000118/M00006015/AI00031697/ApprovalforCompulsoryPurchaseActionEmptyProperties.pdf