Living next to or in the vicinity of derelict or dilapidated properties can affect the value of your own home and your ability to sell it.
You may be able to find a purchaser but that purchaser may not be able to borrow the amount that they require to purchase because the lender's valuer’s opinion of the value is not as high as the price that the purchaser is willing to pay or the price that the seller is willing to sell at.
If the Bank, Building Society or Lender will only lend a percentage of the value shown by the lender's valuation, then the purchaser will not be able to purchase the property if it can’t make up the shortfall. A potential purchaser will also worry about whether they are in fact paying too much for the property and may seek a price reduction from the seller (which won’t always be acceptable to the seller).
There are properties in every area, whether affluent or not, that can fall into disrepair and out of use.
Shilpa Unarkat, Property Solicitor, commented:
There may be investors and other purchasers who are happy to pay cash for property that is next to a derelict property. As there will be no Bank / lender valuation in such circumstances, the sale will depend on what price can be agreed with the seller. The cash purchaser will still need to consider whether they will be able to easily resell their investment and may not be willing to pay the full asking price.
What to do if you own property that is near a derelict/dilapidated property:
- Approach the owner of the property to urge them to take action to improve their property
- If you do not know who owns the property, you can carry out a search via the Land Registry to ascertain if the title to the property is registered and then obtain the title information from the Land Registry. The title information will give you details of the ownership of the property
- If the owner cannot be found or is not willing to co-operate, speak with the Council and request that it sends one of its officers to assess the situation. The Council can carry out work to the property to make it secure and improve its appearance. The costs incurred by the Council will be “charged” against the house
- Once such property has been vacant for a number of months, the Council has the power to obtain an Empty Dwellings Management Order. There is a procedure for obtaining an order but the main point is that the Council and the owner would need to work together to then allow the property to be rented. The Council would not take legal ownership of the property but it would mean that steps can be taken to bring the property back into use
Shilpa added
Failing all of the above the Council could apply for a compulsory purchase order.
For more information on the above, or to discuss your property related matter, please speak to Shilpa Unarkat on 0121 746 3300 or complete our online enquiry form and give more information about your property query.
Whatever kind of advice and assistance you need, whether as an owner, landlord or tenant, for residential property or commercial property, negotiating or enforcing property matters, our Sydney Mitchell property team is here to help.
BBC News Link covering this topic - Shilpa talks to the BBC Midlands Today programme (3m 22s into programme)
http://www.bbc.co.uk/iplayer/episode/b076q38z/midlands-today-12042016
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