Once the property has sold, there will be an entitlement to Disturbance compensation on an evidenced route. This is for the ability to reclaim costs such as Stamp duty, solicitors and mortgage arrangement fees. See our guide to Disturbance here
Stage 11: Bond scheme rights can be exercised
There will be a period of time within which those homeowners who have taken a bond will have the ability to exercise their rights under it to sell. We are pressing for as much flexibility as possible for homeowners. If the bond is exercised, the indexation of the Market Value will then be calculated. This means that if the Land …
Stage 10: Decision to proceed by Heathrow
Once the Development Consent Order powers are granted which is highly likely, Heathrow will need to decide whether or not to proceed. It is again highly likely that at this point they will do. However, they would of course look to undertake a further budget analysis to ensure that it is worthwhile continuing. We expect that they almost certainly will …
Stage 09: Development Consent Order (DCO)
In approximately mid 2020, Heathrow are likely to make their Development Consent Order. This is their application to Government for Compulsory Purchase powers and also for Planning permission for their proposals. This process is likely to take about 12-18 months.
Stage 08: Enter into a bond
Once the Market Value element of the compensation is set, the homeowner will have the option of entering the bond scheme at that value or choosing not to. If they choose not to, only the statutory package will be available. If the bond is entered into, the homeowner cannot object to losing their property but can if they wish make …
Stage 07: Bond scheme valuations
Two Valuations will be carried out to determine the Market Value as of the date that the interest in the previous stage was officially expressed. Heathrow will choose someone off their panel to provide a valuation. Homeowners can also choose someone that Heathrow has appointed if they wish or they can choose their own Chartered Surveyor to carry out a …
Stage 06: Bond scheme interest
Qualifying homeowners are able to express an interest in the bond scheme. This applies to both those who would receive the enhanced package and the statutory package. Expressing an interest does not commit a homeowner to take the terms of the bond but we expect that the vast majority will do.
Stage 05: Main Consultation exercise
On 18th June 2019, Heathrow launches it’s 12 week Statutory consultation on its’ Masterplan. This includes how it intends to deal with homeowners and as such, we provided our own consultation response on behalf of our homeowner clients.
Stage 04: Judicial Reviews
On 1st May 2019, all five Judicial Reviews aimed at challenging Government support for the third runway were defeated in court. Of the 26 points that were considered, 21 were held to be not arguable and the remaining 5 were held not sufficient to block the plans.
Stage 03: National Policy Statement
Across 2017 and 2018, a National Policy Statement (NPS) submitted by Heathrow was considered by Government. With far more detail then available, Government reiterated its support for the third runway, with a huge majority of 415 in favour of 119 against.
Stage 02: Government initial support
On 25th October 2016, Government announced it’s in principle support for the third runway to be built
Stage 01: Heathrow proposals shortlisted
On 17th December 2013, the Airports commission shortlisted Heathrow’s proposals for a third runway. This date is relevant as it provides a cut off point after which homeowners buying in the affected area are not entitled to the enhanced package. The exception is if the homeowner bought off someone who was entitled to the enhanced package.
Stage 12 – Post completion formalities
Your solicitors will deal with registration of the property and pay off any outstanding debts secured against it (if not done just before). Normally an amount of money would have been held back to settle any service charge debts. If too much was held back, this retention would then be released back to you.
Stage 11 – Sale and any related purchase complete
This is the day all the money is dealt with. For your sale, the funds from the buyer are received by your solicitor and will typically be released the same day as long as you are providing keys to an empty property. Any mortgages or other secured debts are repaid by your solicitor with any remaining balance then transferred to …
Stage 10 – Completion date is agreed
Your solicitor will ask you when you would like to complete the sale. They will also speak with solicitors representing any other parties and look to agree the same.
Stage 09 – Exchange of contracts
This is the point where you are committed to a sale or a purchase, as is whoever is buying your property. All parties will have signed contracts and confirmed to the other(s) that they are able to exchange contracts.
Stage 08 – Signing the Contract and a Transfer form
Your solicitor will ask you to sign the contract and a transfer form, in readiness. If whoever is buying your property signs their version of the contract, solicitors will be ready to exchange contracts. If you are buying somewhere as well, you may sign the contract for purchase at the same time as well. The transfer form will be lodged …
Stage 07 – Redemption figures for Mortgages and other debts
If you have a mortgage or any other secured debts on the property you are selling, your solicitor will find out how much is owed on each. They would ordinarily only be able to commit to your sale if there is enough money coming in to pay off any debts that are secured on the property. This could include any …
Stage 06 – Mortgage valuation/survey and offer (if you are buying)
If you intend to take a mortgage, this is the appropriate time to be asking for the mortgage valuation or survey to be carried out. This is needed for the mortgage lender to decide whether the property you are buying is enough security for them to agree to provide you with the loan. Typically a Mortgage offer will follow the …
Stage 05 – Solicitors report (if you are buying)
Your solicitor will provide you with a report identifying any issues which came back from questions they raised with the seller and the Local searches.
Stage 04 – Local searches (if you are buying)
Local searches are enquires your solicitor will submit to organisations such as Local Councils, the Environment Agency, Coal and Water authorities. Responses can identify issues such as nearby planning applications to where you are buying that may impact on your decision to proceed including whether there is a future threat of compulsory purchase, whether the property is in an area …
Stage 03 – Solicitors receive enquires from buyers
The buyer will normally ask a number of questions. These may relate to the land registry information and in most cases, your solicitors will be able to answer them without your involvement. Some answers may however need to be checked with you. On some CPO cases, there will also be two specific forms to complete – a Fitting & Contents …
Stage 02 – Solicitors receive draft contract
Your solicitors receive the draft contract from the buyers solicitor and review. They will negotiate any variations to it and ensure the financial amounts listed are as agreed.
Stage 01 – Instructing your solicitor
Your solicitor will send you some paperwork to complete to instruct them. This will ask you information such as how much you’re selling for. Quite often, there’s a lot to fill in, especially if the forms in stage 3 are sent to you at the same time, which solicitors sometimes do if they have dealt with a number of similar …
Stage 16: Time barred from claiming
Six years after a property is acquired under a Compulsory Purchase Order, the right to third party determination is lost unless a reference to the Lands Chamber has been made in time. Negotiations can of course continue but with no right to third party determination, negotiating strength is very poor. We have known one claimant (not one of our clients) …
Stage 15: Referral to the Upper Tribunal of the Lands Chamber
If agreement cannot be reached be reached on the compensation due, the Council or the homeowner may apply to the Lands Chamber. Prior to doing so, both sides are encouraged to consider alternative forms of dispute resolution. The Lands Chamber is only an available option once the property has been lost to a Compulsory Purchase Order at the last stage. …
Stage 14: Possession and legal title taken by Compulsory Purchase Order
At the end of the period specified in the General Vesting Declaration (stage 12), the property is owned by the Council. Whoever occupies it would therefore be trespassing unless they have signed a tenancy or licence agreement to remain. If they are trespassing, they can be removed by an accelerated court sheriff process similar to court appointed bailiffs.
Stage 13: Advance payment request
This request can be made after stage 11 if required but is more common after stage 12. A request is made under Section 52 of the Land Compensation Act 1973 for an advance payment. This is 90% of the Council’s opinion of the value of the claim. The Council’s opinion may of course be different from our own opinion or …
Stage 12: General Vesting Declaration (GVD) served
The GVD is a Statutory notice which provides a date at which properties it is served on are acquired under the Compulsory Purchase Order. This can be in as little as three months. Sales by agreement can complete until the date specified in the notice. After that date, it is not possible to sell as the Council will already own …
Stage 11: Statutory notices for Order being confirmed
The Council will now place public notices and write to affected parties, confirming that they now have Compulsory Purchase powers. See our guide on Confirmation of a Compulsory Purchase Order here.
Stage 10: Compulsory Purchase Order to be confirmed
If the Secretary of State (or by delegation the Inspector) permits the Compulsory Purchase Order to be confirmed, this means the Council are granted Compulsory Purchase powers. Any remaining objections are overruled so are affectively then null and void. The Council will still try to buy properties by agreement but will now know they can acquire them by force if …
Stage 09: Inspector makes recommendation to Government
The Government appointed Inspector will write up his or her report to the Secretary of State, advising whether to Confirm the Compulsory Purchase Order or to not confirm it. Amendments can also be made. On occasion, the Secretary of State will delegate approval or otherwise to the Inspector. The report can often take a few weeks to be submitted and …
Stage 08: Public Inquiry called and preparation
If there are outstanding objections, Government will call a Public Inquiry to assess the merits of the Compulsory Purchase Order. In preparation for this, the Council and its’ partners will produce various professional Statements of Case and summary documents of the same. This is their evidence put forward to the Inquiry to make their case for why they should receive …
Stage 07: Objection period
Once the CPO has been made, people with qualifying interests will be able to make an Objection to the Order, submitted to the Secretary of State for the Ministry of Housing, Communities & Local Government. There will be a period of time, typically about 28 days where objections can be made. If there are no qualifying objections to the Order …
Stage 06: Compulsory Purchase Order (CPO) is made
When the Council make a Compulsory Purchase Order, what they are affectively doing is requesting permission from Government for Compulsory Purchase powers. These are needed for if agreement cannot be reached with affected parties on a voluntary basis. The CPO will comprise of a cover letter, a schedule of interests (information found out during the land referencing) and a Statement …
Stage 05: Land Referencing
For a Council to make a Compulsory Purchase Order, it must find out who is legally entitled to be informed. They do this by a process called Land Referencing which is a questionnaire sent to every property. This will be supplemented by checks of ownership at the Land Registry. Questions include who owns a property, who lives there and who …
Stage 04: Council resolution
Decisions to regenerate an Estate should not be taken lightly. As such, a number of Councillors within a Council will be consulted on proposals. They will make a resolution to decide whether to pursue Compulsory Purchase or not. Some Council’s will have this decision made by its Cabinet of Councillors and some will have it made by a Cabinet member …
Stage 03: Masterplan is created along with a Planning & Development agreement
The Council along with their development partners will create a blueprint for what they expect the regenerated estate to look like and a routemap for how they will get there. Often, a homeowner guide is produced around this time as well to explain how individuals are affected. Consultation will often step up as well.
Stage 02: Development partner and Housing Association procured
The majority of Council’s choose to work with a Developer and a Housing Association. Some decide to go it alone. Where there is a development partner, Council’s will normally undertake a procurement process where tenders are submitted. The more restrictive the tender process is, the less attractive the proposition will be to developers. Developers will of course have their own …
Stage 01: Consultation begins
Council begins consulting with affected parties on broad principle of regeneration. Consultation will continue through most of the process. At this stage, little may be known about the regeneration scheme. What will be built, when it will be built and when properties will be demolished may not yet be known.