CPOs & Whitefields Estate
London Borough of Barnet
25 April 2015
Anthony Collins Solicitors
 We
have been appointed to provide this presentation to you
as independent advisers
 We are here to answer your general questions
 We are not able to advise you individually
 We are joined by Stephanie Hall, barrister from Francis
Taylor Buildings
Helen Tucker
Jonathan Cox
Stephanie Hall
Introduction and background
The London Borough of Barnet (“LBB”) has approved two
Compulsory Purchase Orders (“CPOs”) in order to enable
significant regeneration of Brent Cross Cricklewood
This presentation will explain:
 What
the CPOs are
 What the CPO process is
 How the CPO will affect you
 LBB’s responsibilities to you
 Financial compensation you are entitled to
 What is being offered to you now
LBB’s powers of compulsory purchase
Section 226(1)(a) Town and Country Planning Act 1990 gives
LBB with a power to purchase land in its area to carry out:
 Development
 Redevelopment, or
 Improvement to the land
…as long as it is likely to promote or improve the area’s
economic, social or environmental well-being
Development, redevelopment and improvement
LBB proposes a comprehensive regeneration of Brent Cross
Cricklewood that will:
 Develop
new retail, residential and community facilities
 Improve highways infrastructure and car parking
 Improve public spaces and the general environment
Improvement to area’s well-being
The regeneration aims to significantly benefit and improve
the well-being of the area
Uniting communities north and south of the North Circular:
• Strong and attractive links achieved by major improvements to existing
roads, public transport and infrastructure
• Development of gateway site between north and south consisting of new
town centre and residential quarter
Title here
Meeting the area’s housing needs:
• Development of 7,540 new homes over 20 years including affordable homes
and replacement homes for Whitefields Estate
Improving everyday life for the community:
• Provision of new and improved education and health facilities
• Improvements to open space and community recreational facilities
Voluntary Arrangements – reaching
agreement early
 LBB
are encouraged by Government Guidance to enter into
voluntary arrangements early on to compensate you and reach
agreement
 What
 We
offers are made depends on your circumstances
outline what is on offer later in this presentation
Current Position
On 3 March 2015, LBB’s planning committee approved the
making of 2 CPOs:
 The
London Borough of Barnet (Brent Cross Cricklewood)
Compulsory Purchase Order (No.1) 2015 (“CPO1”)
 The London Borough of Barnet (Brent Cross Cricklewood)
Compulsory Purchase Order (No.2) 2015 (“CPO2”)
Both were submitted to Full Council and approved (by one
vote) on 3 March 2015.
Land affected by CPO1 & CPO2
Land under CPO1 &
CPO2 forms only
part of the land
being regenerated
under the full Brent
Cross Cricklewood
regeneration
project
Whitefields Estate
The Whitefields Estate is situated in a key area that is to be
redeveloped in order to form the “living bridge” between
communities to the north and south of the North Circular
This will require complete redevelopment of the Whitefields
Estate, requiring all residents to vacate their properties, which is
why LBB considers it necessary to use its CPO powers
Properties in Whitefields Estate are included in both CPO1 and
CPO2
The CPO process
The process is set out in:
Before LBB can purchase the land,
the CPOs must be confirmed by
the Secretary of State
There is a strict legal process that
LBB must follow before the CPOs
can be confirmed
• Acquisition of Land Act 1981
• DCLG Circular 06/2004:
Compulsory Purchase and the
Crichel Down Rules (October
2004)
As part of this process:
• You should already have been
served with a “section 16
notice” asking you to provide
property owner/occupier details
for the purpose of the CPO
Outline of CPO Procedure
Formulation
Making the Order
Notification and
Publicity
Decision
Possession
Resolution
Referencing –
Recording Information
Objections
The Inquiry or Written
Representations Procedure
Compensation
Next steps
1.
2.
3.
“Land Referencing”: LBB has already
commenced the process of identifying legal
interests / rights to occupy properties
Making the Order: LBB prepares, signs and
seals CPOs. 3 March 2015
Notification and publicity: LBB serves notices
directly to those affected by the CPOs; erects
site notices and publishes notices in the
press. Notices include details of the objection
process. PLANNED FOR 30 APRIL 2015
LBB must include
within each CPO
names and
addresses of those
under it
Next steps - Overview
4.
Objection period: A 21-day period but LBB agreeing 28
days allowing anyone who wants to object to do so to the
Secretary of State. Deadline is 30 May 2015
5.
Inquiry: If relevant objections are made, an Inspector will
consider objections at an inquiry, following which the
Inspector will report recommendations to the Secretary of
State
Decision: Secretary of State makes final
Decision on CPOs
6.
It is anticipated
this final stage will
take place in mid2016
Objections Process
 Objections
must be in writing. Details of who to send the
objection to and the time limit (30 May 2015) will be in the
30 April 2015 notice
 No format for the objection; you or a professional adviser
can write a letter
 If:
•
•
no objections are made; and
the Secretary of State (“SoS”) is satisfied LLB has followed the
proper procedures
the SoS will consider the case on its merits and can confirm,
modify or reject the CPO without any hearing
Time limits MUST be followed
When Objections are Made
 When
relevant objections are made (and not withdrawn)
there will be a public inquiry
 Any
tenant, leaseholder or owner affected who has a
remaining objection at the time of the inquiry has a right to
be heard at that inquiry
 The
SoS will arrange the inquiry and it will be held locally
Validity of Objections
 Most
objections will be valid – i.e. will be considered by the
SoS unless
•
•
They only concern the amount of compensation or area of purchase
The objections are really about LLB’s adopted development plan
defining the use of the land
Grounds of Objections
You might:  Agree with the scheme but disagree with the details of the
implementation and want it to exclude the Estate, for
example; or
 Object to the scheme completely
Depending on your objection LLB might be prepared to
negotiate or give an undertaking
The Inquiry
 The
SoS will write to LBB and all remaining objectors
indicating an inquiry is to be held (the date of this notice is
the “relevant date”)
 After the relevant date there may be a pre-inquiry meeting
to discuss the inquiry arrangements
 LLB will then serve a Statement of Case on the SoS and
each objector which will set out the full details and justify
the reasons for the CPO
 Remaining Objectors may be asked to provide a Statement
of Case if complex or substantial objection
This is where you might want to take specialist advice
Final Steps to the Decision
 Inquiry
Procedure
 Site Visit
 Inspector’s Report
 Recommendation to SoS
 Decision made by SoS
Challenging the Decision of the SoS
 Challenge
must be within 6 weeks of the confirmation of
the CPO
•
Basis of challenge could be:
•
No power to authorise the Order in the circumstances
•
Procedure rules have not been followed correctly and the applicant has
been prejudiced by this
Freehold and leasehold interests
Obtaining possession (after approved CPOs)
If there is no agreement to transfer your property to LBB, LBB
could follow the :  Notice to Treat route or;
 use a General Vesting Declaration (“GVD”) to automatically
transfer leasehold / freehold ownership to LBB
Freehold and leasehold interests
Obtaining possession: General Vesting
Declaration
LBB can use a General Vesting Declaration (“GVD”) to
automatically transfer leasehold / freehold ownership to LBB
The process is as follows:
 LBB serves on leaseholders / freeholders and publishes in a
local newspaper a notice of intention to use a GVD
 After two months, LBB will serve a second notice stating that
the GVD has been executed and giving the date that ownership
will transfer to LBB
 Land automatically transfers to LBB on that date. LBB can enter
and take possession of the land
Freehold and leasehold and Tenancy interests
Obtaining possession: Notice to Treat Option
LBB may use a Notice to Treat (“NtT”) to transfer ownership
to LBB
The process is as follows:
 LBB serves a NtT on each individual leaseholder / freeholder /
tenants of over 1 year
 Then gives a Notice of Entry (at least 14 days) when they
propose to enter (note they are not obliged to enter so will
frequently let you stay longer)
 For leaseholders/freeholders there then needs to be a legal
transfer following agreement on compensation
Freehold and leasehold interests
Compensation
LBB will pay compensation to you so that you are no worse off
financially than before the purchase. Compensation will include:
 the
market value of the land taken
 any loss caused as a result of losing possession (disturbance
costs)
 home loss compensation payment (occupiers only)
Freehold and leasehold interests
Compensation – market value of land taken
Valuation of market value of land taken:
•
•
Date of valuation is the earlier of:
•
For NtT date of possession or assessment
•
For GVD vesting date or assessment
Must be valued without taking into account any
increase/decrease attributable to the development
scheme
Freehold and leasehold interests - Occupiers
Compensation – Disturbance Costs
Disturbance Costs may include:
•
Reasonable removal costs
•
Reasonable surveyors and solicitors’ fees
•
Stamp duty arising from purchasing replacement
property
•
Costs in having to obtain a new mortgage
Costs are related directly to you so can include adaptations
Freehold and leasehold interests – Absentee
Landlords
Compensation – Disturbance Costs
Limited Disturbance Costs related in acquiring
a replacement property within one year
Plus incidental costs
Freehold and leasehold interests
Compensation – home loss payment
You will be entitled to a home loss payment (10% of Market
Value, min £4,900; £49,000 max) to compensate you for the
discomfort of being compelled to move out of your home if:
1. You must move out of your home because of the CPO (LBB
has agreed if you move out early, you, with their agreement will still
get the payment); and
2.
You have occupied the property as your main residence for
one year or more
So absentee landlords not entitled to Home Loss Payment
Example - Homeloss
Your home is valued at £250,000.
You own the freehold.
Homeloss is 10% of £250,000 = £25,000.
Example 2 Homeloss
Your home is valued at £375,000.
Homeloss is 10% of £375,000 = £37,500
Freehold and leasehold interests – Sub Tenants
of Absentee Landlords - Compensation
 Tenants
with AST tenancy agreements
 Voluntary
scheme gives landlords time to terminate tenancy
 If “due
process” then tenants would receive compensation for
actual losses
Rent Act 1977 sub-tenants treated differently
Freehold and leasehold interests – Mortgagees
Compensation – to lenders
 Loan
repaid from compensation – freeholder/leaseholder will
receive the balance
 Negative Equity – payment will be made to lender who will still
retain the right to recover the rest from the
freeholder/leaseholder
Occupiers will still receive 100% home loss and disturbance costs
Freehold and leasehold interests – Offers on
Table
 Indicative
offers already made (letter late March)
 Letter contains offer to agree to purchase: Advance Payment of £5,000 when sign agreement
A year’s notice (6 months for absentee owners)
A Loss Payment
• For resident owners – a Home Loss payment of 10% of the market
value
• For absentee owners – a Basic Loss payment of 7.5% of the market
value
in either case, less the £5,000 already received
Disturbance Costs – SDLT restricted to similar value replacement
property
Freehold and leasehold interests – Offers
Shared Ownership Offer (for Residents Owners Only)
Replacement property in regeneration area
Your compensation purchases a % of a new property
No rent to pay on balance equity
Council retain equity
You repay Council from proceeds when the property is sold
You pay 100% of running costs (including service charges)
Parties propose to work out an offer to provide service charge protection –
need housing association to be appointed first
Freehold and leasehold interests – Phasing
Phase 1 will be: • houses,
• flats over the shops; and
• Rawlinson, Dyson, Anderson Blocks
All replacement properties will be in Brent Terrace
Questions??
 Will
be collated and turned into a FAQ sheet
Disclaimer: Whilst every effort has been made to ensure the accuracy of these materials, advice should be taken before action is
implemented or refrained from in specific cases. No responsibility can be accepted for action taken or refrained from solely by
reference to the contents of these materials. © Anthony Collins Solicitors LLP 2014
If you have any queries or comments in
regards to this document please contact
Jonathan Cox of Anthony Collins
Solicitors LLP on 0121 212 7402 or
jonathan.cox@anthonycollins.com
Anthony Collins Solicitors LLP
134 Edmund Street
Birmingham B3 2ES
MDX 13055 Birmingham 1
Tel: 0121 200 3242
www.anthonycollins.com