Compulsory Purchase pitfall?

You are here : Member Forums General Discussion Compulsory Purchase pitfall?
This topic has been locked as no posts have been made within the last 90 days.
G
gary29
7 Posts
0 Thanks
I have recieived letter from my local authority today, stating it is a Government, Local Auhority initiative. They are inviting me to sell a house to them, to bring the house up to the decent home standard. Subject to thier own valuation criteria. They state the scheme avoids Estate agents and Dear RLA members. I dont know whether any other members have received written correspondence from thier Local Auhority, with regard to bringing back into use long term vacant houses? I am reading "Financial complexities" with selling to a private individual. I am been given the option to sign up for further consultation. I can opt out however. They state it is one of a number of schemes that they fail to allude to. They only seem concerned in purchase out-right. Nothing along the lines of a partnership arrangment? Something I may be interested in.

I do feel however that given that the property has been un-occupied for 4 years. Mainly,because of the fact over this time I continue to suffer from a long term debilitating medical condition which in turn, has prevented me going back to work. This has meant a fall off in disposable income. Hiked increases to 150% Council tax. I am barely able to pay the BTL interest payments. My efforts to bring the property back into use in the private rented sector have been piecemeal at best.It is mostly complete now. I continue to be cash strapped to have things like a new energy efficient gas boiler installed (Even though the existing boiler is safe)and subject to Landlord Gas Safety certification. The house does require new carpets upstairs. On the plus side, it has good amenities, being within a 5 minute walk to bus stops and from next year a new tram stop.

The timing of the letter is unfortunate, considering I am in the process of selling a leasehold flat, in order It will release funds to pay of the capital outstanding on the BTL house that the LA seem to be interested in all of a sudden. I have no other means to raise future capial to repay the sum borrowed. The amount outstanding is 30K. Is it possible that I could be subjected to a compulsory purchase order by my local authority? And should I be concerned that this could come to pass?.

Also, I would be grateful if the learned membership can tell me what the capital gains tax liability might be if I am subjected to any. In respect of selling a leasehold. Do I calculate the gain from the original purchased market value. Even though I excercised a right to buy option as it was my principal residence. So I was able to purchase at a substantial discount.
04/10/2013 15:40

Want to read more?

This is a members only forum, if you want to read more you need to login to your membership, if you are not a member, click here to join.

This topic has been locked as no posts have been made within the last 90 days.
Landlord & Investment Show
Martin Co
Envirovent
Landlord Broadband

Share this page