What is a Blight Notice?

We’ve said it before, selling a house can be hard. So many factors can come into play, that a sale on the traditional market is extremely challenging. One thing many homeowners fear, is “blight.” However, thanks to a blight notice, a sale can still proceed. A blight notice compels the local authority to buy your home on Compulsory Purchase terms, an avenue perhaps unexplored by many.

In this edition of our blog, we explain what blight is and how a blight notice could be beneficial to those struggling to sell their home.

What is blight?

Blight is the name given to the reduction in value your property will suffer because of the threat of a Compulsory Purchase Order (CPO).

With a CPO looming over the property, potential buyers are likely to refrain from making an offer due to a fear that the property will eventually be demolished or located in an area where significant change is in the offing. Even if a prospective buyer is keen on the property, a mortgage lender may be reluctant to lend due to uncertainty over the future of the home.

So, before we go any further, we’ll investigate the CPO to give you an idea of when blight may come into effect.

What is a Compulsory Purchase Order?

A Compulsory Purchase Order, or CPO, can be used by local authorities to force homeowners to sell their property because of projects that may improve the local area. A CPO could be used for a host of reasons, including:

• Essential building projects such as housing developments.
• Improvements to the local area, such as new roads or rail networks.
• Installing essential services such as water mains or electricity supplies.
• Clearing areas of poor-quality housing.

If a house obstructs the areas where any of the above work is being conducted, a CPO may be issued, forcing the owners to sell their homes.

How soon do you have to sell after a Compulsory Purchase Order is made?

When a CPO application is made, you might have months or even years to wait before you are forced into selling your home. This is because the council must apply to a government department to gain authorisation. Whilst the threat of being forced from your home is there, it may not come into effect if the government refuses to grant what the council are asking for. However, in the event the plans are approved, you’ll need to sell your home, and that is where a blight notice comes into play.

How do I use a blight notice?

As mentioned earlier, a blight notice forces the local authority to buy your home on CPO terms. So, to get one and put the council in this position, you’ll need to apply for a blight notice. However, there are a few criteria you must fulfil for you to qualify for a blight notice:

• Only resident freeholders or leaseholders with at least three years remaining on their lease qualify. Landlords and owners of empty properties are ineligible.
• You must be able to prove that you have tried selling your property for approximately six months with an estate agent and have been unable to secure a sale except for a great discount.

If the Government has already confirmed that a CPO has been granted and forces you to sell, you are not required to prove that you have been making reasonable attempts to sell the home.

To apply, simply contact your council planning department for the correct paperwork or go through a chartered surveyor.

How quickly can I get a blight notice?

Once you have submitted your application for a blight notice to the local council, you’ll have to wait for up to two months to learn whether the council will buy your home. They are obligated to respond within this timeframe, and if they choose not to purchase your property, they must explain why. If they fail to respond to your application, the blight notice is automatically enforced, and the council will have to buy your home.

Should your application be successful, you’ll be given a “Notice to Treat”. Think of this as a commitment from the council to buy your home. They have three years to complete the purchase and must do so on CPO terms.

Is a blight notice a good idea?

If you are being forced into a sale of your home, a blight notice can be a good way to ensure your house sells. However, it is not a quick process. On top of the six months or so that you have spent trying to sell on the traditional market, there are potentially months, if not years, of negotiations with the council to settle on the price and terms of the sale. Furthermore, if you’ve been unable to reach an agreement on the price and the enforced sale date approaches, you may end up having to sell at less than you would expect. Trying to claim the excess will then take you through costly and drawn-out legal processes that could cost more than the amount you believe you are owed.

A quicker solution is to speak to Bettermove. We work fast to ensure sales work on your terms. If you are facing a forced sale, we can buy your property in 30 days or less, allowing you to avoid the complex negotiations with the council and the potential for a wait of months or even years. With cash house buyers ready and waiting, you can sell your house fast, and sell it without paying a penny. We cover your legal fees, allowing you to sell your house for free.