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Could I lose a property I buy due to community development?

madz
by madz 08 May 2012  |  Comments 3 comments  |  Love Love  0 loves

If I were to buy a leasehold in an area that is possibly due to be re-developed, where do I stand if the council do infact wish to develop on the land?

Would I lose everything I invest? Be given the market value of the property? Negotiate with the council on the value?

Any replies greatly appreciated!

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Comments (3)

  • JoeEasedale
    Love rating 174
    JoeEasedale posted

    Compulsory purchase is done at the value the council puts on the property. If yours is next door to the land they want, they might not buy it at all and leave you with a white elephant.

    Posted on 08 May 2012 | Love Love  1 love Report
  • MikeGG1
    Love rating 879
    MikeGG1 posted

    The valuation would normally be done on the basis of the land value before the redevelopment. From that would be deducted the value of the lease.

    But, as Joe said, the real problem would be if they decided that they didn't need your bit and put something next door which would lower the value of your property.

    Mike

    Posted on 08 May 2012 | Love Love  1 love Report
  • madz
    Love rating 2
    madz posted

    Thanks to the both of you, very helpful.

    Posted on 09 May 2012 | Love Love  0 loves Report

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