Freeholder and Leaseholders questions and answers
What is a ‘decant’?
A decant is the legal term used to explain the process when you are required to move out of a property either due to building work or where major repair works are required. Decants can be either permanent or temporary.
What is a decant policy?
A housing decant policy sets out the council’s responsibilities to you when you have to move because of regeneration. There are two policies - one for council tenants and one for council leaseholders and freeholders. This is because tenants and leaseholders are affected in different ways.
When was the Decant Policy agreed?
The Decant Polcy was agreed by the council’s Housing Sub-Committee in September 2017.
What is a ‘permanent decant’?
This is when a tenant is moved out of their old property straight into to another home where they will live permanently. Cambridge Road Estate tenants will mostly be permanently decanted into one of the newly built homes on the estate.
What is a ‘temporary decant’?
This is when a resident is moved out of their old property temporarily until a more permanent home is available.
What is a ‘masterplan’?
The masterplan is the overall design plan for the estate’s street layouts and broad outlines for design of buildings. Masterplanning is the process to create this overall design plan.
What else does the masterplan do?
Different parts of the estate will be rebuilt at different times, so the masterplan includes a phasing strategy for the regeneration, because it is not possible to simply rebuild the entire estate all at once.
Who are resident leaseholders or freeholders?
You are a resident leaseholder or freeholder if you have occupied the property as your sole and principal home for at least one year prior to the date of the notification letter we send you setting out our intention to acquire the property.
How will you decide who moves first?
The regeneration of estates of this size are organised on a phased basis. This means that properties are decanted and cleared in accordance with the phasing strategy in the masterplan.
When will my home be purchased?
It is too early to tell you the exact date that your home will be purchased at this point as we have not yet developed a masterplan.
Is the purchase compulsory?
As part of the regeneration plan, we will seek to buy properties from leaseholders and freeholders in order to build the required new homes. An in depth process can be found in the decant policy.
In circumstances where leaseholders or freeholders refuse to sell voluntarily, we can make a Compulsory Purchase Order (CPO). For more information on this process, we suggest you read the national guidance.
Are we being offered the opportunity of a home on the new development?
Yes, we’re offering all leaseholders and freeholders the opportunity of a new home in the new development. The following four options are available:
- Outright sale/purchase – we buy your existing property and you make your own arrangements to buy a new home elsewhere.
- Purchase a new property in the new development - we offer you the option of moving from your present property to a new build property of a similar size (or smaller) on the same estate, providing you can afford the full value of the new property.
- Shared equity – if you can’t afford to make up the difference between the value of your property and the full value of a property on the new development, we will offer you a shared equity option. You will be required to invest the full market value of your existing home (including your existing mortage) plus your full home loss payment.
- Shared ownership - if you choose, for whatever reason, not to invest the full market value and home loss payment for your current property, we will offer you a shared ownership property on the new development.
Will I have to move more than once?
We will try to ensure as far as possible that the phasing of the development is timed in such a way that you’ll be able to move to your new home in the new development at the same time as you complete on the sale of your current home.
For some leaseholders and freeholders, however, it may not always be possible for us to offer you an immediate move to a newly built home.
How will the council value my home?
We will arrange for an independent chartered surveyor to carry out a valuation of your home. Our offer will be at open market value. This is what the surveyors perceive to be the true market value of your home. The value of each property would reflect its size and condition and would take into account any work you have done.
What compensation am I entitled to as a resident leaseholder or freeholder?
In addition to the full market value of your home, a resident leaseholder will be entitled to:
- A home loss payment of 10 per cent of the agreed purchase price up to a maximum of £63,000 (this is subject to change).
- A disturbance payment to cover the reasonable costs of moving.
What compensation am I entitled to as a non-resident leaseholder or freeholder?
In addition to the full market value of your property, non-resident leaseholders and freeholders will be entitled to:
- A basic loss payment of 7.5% of the value (up to £75,000) – or the statutory maximum in effect at the time.
- Reasonable costs incurred in selling their property to us, for example legal fees arising from the purchase of a replacement property.
What should I do if I disagree with the council’s valuation?
If you disagree with our valuation of your home, you can obtain your own valuation from an independent chartered surveyor. We will reimburse reasonable costs associated with the valuation.
We have a fixed mortgage - who is responsible for the penalty charges?
We will pay penalty charges if you can provide proof that they are being charged.