Alton Area regeneration
Leaseholders and freeholders
If you are a resident, or non-resident, leaseholder or freeholder whose property is in one of the affected blocks, the council is willing to purchase your property.
We will purchase the properties of both resident and non-resident homeowners at the market value at any time up to the start of, and during, the regeneration.
We will arrange for a valuation of your property through our agent GL Hearn, and will offer the market value plus the compensation package as set out in the leaseholder and freeholder offer booklet.
The offer states the following conditions:
- A 10% home loss payment (up to a maximum of £53,000)
- Reasonable costs associated with moving home, selling your existing property to the council and purchasing a new home. The replacement property should be purchased within a year of the sale to the council
- A 7.5% home loss payment (up to a maximum of £75,000)
- Reasonable costs associated with the purchase of a new property in the UK. The replacement property should be purchased within a year of the sale to the council
Leaseholders and freeholders should be aware that surveyors must always base valuations on recently completed sales of similar ex-local authority properties, on council estates, in similar condition, of similar age, and in the local area, in order to avoid falsely raising expectations.
By law, no one can be paid less, or more, than market value for their property because disruptive regeneration is going on, or more expensive new homes being built.
Owner-occupiers will be offered a brand new home in a new development on their estate, which, as newly built, will be worth more than their existing, older property. They can transfer what they own of their existing home into the new one, and pay no rent on the rest - this is called shared equity.
For example, an owner-occupier's home is worth £250,000 and they move into a new one the same size but, because it is newly built, it has a market value of £300,000. Shared equity enables the resident leaseholder or freeholder to move into it, but without paying rent on the equity shortfall. Purchasing a greater share, or all of the property, is known as staircasing.
If you are interested in selling your property at an early stage, contact us and we will arrange for your property to be valued.
Additional commitments to leaseholders and freeholders
At the Housing and Regeneration Overview and Scrutiny Committee in November 2015 (see Paper 15-427) we provided clarification and detail for leaseholders and freeholders on certain areas of the commitments of the regeneration scheme.
The shared equity offer has been prepared to assist resident owners to afford to continue to own a property and live in the area and, in so doing, contribute to retaining continuity and stability of the existing community. The clarifications below have been provided following questions from some resident owners as to some of the more detailed aspects of the equity share offer.
- An equity share unit lease will have restrictive covenants which prevent leaseholders from subletting their property
- This means that the ‘no rent and no interest’ offer is only available to those leaseholders who continue to reside in the property as their principal and only home
- However, within the restriction there will be exceptions to the no sub-letting policy where, for instance, the owner needs to move away for a certain period due to a change in their circumstances (for example, a work contract, caring for a relative etc.)
- Equity share owners who wish to sub-let under exceptional circumstances should contact us for approval in writing
- A more detailed policy will be drawn up in advance of marketing the shared equity offer, which will set out a fuller list of exceptional circumstances
- An equity share product would terminate on the sale of the property to the open market, with each party taking from the sale their portion of the equity
- Should the resident leaseholder pass away, then the property with the equity share offer may be passed on through inheritance on one occasion
Defining resident and non-resident owners
For the purposes of their treatment in line with the offer outlined above, resident and non-resident owners will be defined as follows:
- Resident owners should be resident in their home on the date on which we signed the development agreement with a private sector developer. Resident owners should continue to be resident in the home from that date forward until the date when an agreement is reached with us to sell the property to us or to move into a new home within the development. Please refer to Committee paper 15-427.
- A detailed exceptions policy will be prepared to cover circumstances where residents may temporarily not be occupying their home. This will include:
- Having to be abroad as a result of employment by armed forces;
- A fixed term work contract in a location where it is not reasonable to expect them to reside in the property;
education or training course in a location where it is not reasonable to
expect them to reside in the property; and
this should be their only owned UK residence, and be available for their occupation on termination of an assured short term tenancy.