Compulsory Purchase Order

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    Hello everyone
    I would welcome any help on this case. Claimant owns a property that is subject t the above and is due to accept £50k. However, this will not leave him with enough to buy another property and so he has arranged for himself a rented property. The question is, when he gets his £50k can this be disregarded for 26 weeks as is the case when someone sells a property with the intention of buying another?

    It just seems unfair on the claimant who through no fault of his own, finds himself with no option but to move into rented accomadation.

    Kevin D

    If the money is not to be used to purchase another property, it’s difficult to see how it could be disregarded.

    Anticipating an argument that the clmt’s “intention” is to use the money for that purpose, any such intention would have to be realistic. In my view, the test for “intention” would be same as for temporary absence – it must be realistic – a “desire” is not enough.


    Chris Robbins


    The answer is no. Schedule 6 Para 3 of the HB Regs apply. The disregard is only where the proceeds of sale are due to be used for the purchase of another property.
    Your case does seem odd. If, as you say, he cannot afford another property then either claimant had outstanding mortgage (which for some reason he cannot transfer to a new property) or his C.P.O property must have been about the size of a garden shed. Otherwise why can he not re-enter the property market if he so wishes?


    I understand, the problem is that he only bought this property in August last year for £55k. He has a mortgage of £54k and he will only get £50k mortgage. To add to his woes he has just been made redundant. To buy a similar property in the area would cost him about £70-75K.

    Thank you for your replies


    Sorry, my mistake above should read £50k CPO


    The size of the mortgage changes things. I assume that he will never see the £50K (or any part of it) – it will go straight to the mortgage company to pay £50k off his mortgage. Therefore, there will be no capital received from the CPO to take into account.


    If other properties are in the £70k region shouldn’t that be the CPO value?

    HE also has a good case against his Solicitors as anything likely to result in a CPO should have come up in a trace; redevelopment schemes take absolutely ages to get off the ground.

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