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Buying a home with a Compulsory Purchase Order

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  • Buying a home with a Compulsory Purchase Order

    hi, I am interested in a really nice property going below market value for £35,000 but the estate agent has told me this is because it has a Compulsory Purchase Order on it. I have looked this up on the internet but cannot find much about what this means if I was to buy it outright. Does this mean that the house will be pulled down soon and if so would I be eligible for compensation from the counsil if this happend 6 months later after purchasing? Any advice appreciated.

  • #2
    Yup, that means the local council have decided they need/want to build something over it. Road, railway, civic building, recycling depot, something like that.

    You need to look on the local council's website, looking for detail on planning applications in the immediate area, or call into their offices to see the plans in person.

    google "what compulsory purchase order" and the second search result is a link to a government booklet explaining the CPO system - this might be a good start - where did you 'look on the internet' if you haven't found this booklet?

    Depending on what stage the CPO has reached, I would have thought a home with a CPO would be virtually unsellable. Why would you buy it, merely to receive compensation from the council later? They're unlikely to compensate you for anything more than what you paid (probably less) and they're unlikely to compensate for the various fees, etc that you'll pay if you do purchase....

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    • #3
      A compulsory purchase order (CPO) allows a local authority to acquire land and/or property for certain purposes i.e. where a listed building has fallen into disrepair and where it seems unlikely the owner will repair it. Also some properties have been bought by such orders to allow road building and development etc.

      The government states that "compulsory purchase orders are important as a means of assembling the land needed to help deliver Urban Regeneration".

      The Processes of a CPO

      When a local authority authorises an order it is sent to the Secretary of State for approval. Anyone who has an interest in the land or property is sent notification of the order and has a right to object to the order. In fact anyone can object to a CPO even if they have no interest in the land or property. You should instruct a specialist solicitor or property consultant who will assist with any application to the Land tribunal.

      Should an objection be upheld against a CPO, a public enquiry may be necessary. An enquiry would be overseen by a government inspector on behalf of the Secretary of State, who will listen to both arguments for and against the order and make the final decision.

      Should the Secretary’s decision agree with the purchase order, the local authority can proceed to take possession of the land or property.

      Please note that in some cases an owner may be entitled to compensation over and above the purchase price for their loss. You will need the services of a specialist solicitor or property consultant to negotiate on your behalf.


      Hope this helps,
      Pippa

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