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F E Smith
F E Smith, Advocate
Category: Property Law
Satisfied Customers: 10257
Experience:  I have been practising for 30 years.
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Council wants to purchase all the flats in my block to

Customer Question

Council wants to purchase all the flats in my block to develop it. It will use CPO if necessary. I want advise.
Submitted: 4 months ago.
Category: Property Law
Expert:  F E Smith replied 4 months ago.

Hello for background info who is council and how long have you lived there please?

Customer: replied 4 months ago.
Barnet council. It is a buy to let flat that I have owned for 20 years. I do not live there.
Customer: replied 4 months ago.
I am hard of hearing and hence I would prefer communication by e mail.
Expert:  F E Smith replied 4 months ago.

The offer of a telephone call comes out automatically. You can just ignore it.

Please confirm that you own the property.

The compensation that you get under a Compulsory Purchase Order and the process is set by statute.

The Government have produced this leaflet on exactly this:

the Procedure for objections is 3.28 and you may be eligible for legal aid in respect of putting a case for objection although if this is a large block of flats, I can tell you now unlikely that an objection from you in isolation is going to make any difference.

There is a separate booklet in respect of compensation:

There is a flowchart for claims on page 10.

You are entitled to money in respect of the value of the property and removal expenses, legal expenses, stamp duty, surveyors fees, and a disruption payment.

The process is rather complicated as you appreciate and if having read (the second booklet in particular) you have any queries, I would be happy to deal with those for you

Customer: replied 4 months ago.
Thank you for your answer. Surely I would refer to sites you have mentioned. I know you have answered some of the questions. But i have already prepared some questions which I have written below:
BACKGROUND INFORMATION:Flat is owned joitly with my wife. Bothe of us are in late 70s and do not want to sell the flat because of loss of income and huge amount of capital gains tax. We wanted to live the flat in will.At the moment council has written to all of us that they want to purchase the flat as they want to build old age accommodation there. I think it wants a voluntary agreement, but it would use CPO if needed.If we have to sell the flat, we want it to happen in the new tax year.Council has written me a letter that it wants to value the flat. I have yet to respond to this.My initial questions to you are:1. Should I let council to carry out the valuation?
2. Should I negotiate the selling price of the flat before CPO or after?
3. Would I need professional help to negotiate?
4. Who would pay the fees of professionals and other incidental expenses?
5. Can I claim roll over relief to mitigate capital gains tax?
6. If yes, can I calim this relief if agreement is reached by negotiation or by CPO?
7. If roll over relief is applicable, do I have to buy another property or can I buy any investment like shares, etc.
8. How much can I claim?
9. Besides the market price, will council make any additional payments? If yes, what are these?I may have more questions once I read your answers.
Expert:  F E Smith replied 4 months ago.

This is your primary residence where you live with your wife and there is no capital gains tax to pay.

1 I suggest that you also get your own valuation done as an arguing point.

2 Before

3 they could well take more notice if the correspondence comes from a solicitor and do remember that you may be eligible for legal aid

4 see point 3 above

5 there is no capital gains tax on the sale of your main home. I am assuming it isn’t an investment property

6 not applicable

7 not applicable

8 see bottom of page 21 of the second leaflet.

9 I answered this in my earlier reply

Customer: replied 4 months ago.
This is an investment property as I wrote to you before. Hence it is important for me to know the answers to questions 5,6 & 7
Customer: replied 4 months ago.
I would also like to know what sort of compensations I am allowed as an investment owner in both the cases-by negotiation or CPO
Expert:  F E Smith replied 4 months ago.

I’m afraid that capital gains tax is not my area. I will opt out for another expert.

Customer: replied 4 months ago.
Thank you. Guess I will have to try for another expert. I won`t be paying for this service.
Customer: replied 4 months ago.
Thank you.