Discretionary Purchase and “Sale Under Shadow” of a CPO/DCO

Specialist CPO/DCO solicitors helping homeowners and businesses who are affected by CPO/DCO schemes.

The use of compulsory purchase powers, whether under a CPO or DCO scheme, is meant to be a power of last resort and so acquiring authorities are meant to acquire land/legal rights by agreement/negotiation rather than compulsorily.

That legal context means that many acquiring authorities will seek to purchase land and property “under the shadow” of the exercise of compulsory purchase powers. In other cases, some acquiring authorities offer discretionary purchase schemes which, subject to criteria, means that a person without remedy now (i.e. not a qualifying blight claim) can sell their property at its current market/unblighted value. More information about both circumstances is set out below.

How property may be bought or sold ahead of a CPO/DCO

Discretionary Purchase

There are many circumstances whereby a person does not qualify for statutory blight, or does not currently qualify, but they experience a “blighting impact” because they cannot sell their property because of any given scheme or proposed scheme.

Matters may be compounded in circumstances whereby the property owner needs to move or “sell up” now. Those circumstances may be because of a financial difficulties, relationship breakdown, divorce, ill heath, change in employment or bereavement to name but a few.

So in addition to the uncertainty from any given CPO or DCO scheme a person or business is faced with an external factor which gives rise to a pressing need to sell their property.

Thankfully, a number of statutory bodies offer schemes to address these sorts of scenarios, more typically termed as “Discretionary Purchase” matters. Subject to criteria, a statutory body or scheme promoter can and will agree to purchase “blighted” property in advance of confirmation of any given CPO or DCO. The advantage to an individual being that they sell, to the scheme promoter, their property at current market/unblighted value, giving them certainty and the ability to move on but without considerable financial detriment.

For the acquiring authority a discretionary purchase may resolve a potential future claim at an earlier stage, thereby providing certainty to in addition to potentially reducing risk through formal challenge by/from that relevant land or property owner.

So a successful discretionary purchase can be advantageous to/for all parties.

Our role is to ensure that there is a qualifying Discretionary Purchase scheme and our clients’ application is presented in the best way possible, with the view of securing the most favourable outcome for our clients.

Purchase of property under threat of compulsory purchase

The use of compulsory purchase powers, whether under a CPO or DCO scheme, is meant to be a power of last resort.

For this reason, in many cases an acquiring authority or scheme promoter will seek to acquire land, necessary rights or an option to buy land in advance of a CPO being made or a DCO confirmed. The advantage to the individual may include favourable financial terms but also certainty in terms of their living and/or business arrangements. For the landowner/Claimant any deal may include the ability to recover payments in lieu of statutory compensation that would arise in a future statutory blight claim.

For acquiring authorities compulsory powers are meant only to be used as a power of last resort and so they are expected to acquire land/legal interests prior to invoking a CPO/DCO. In addition, where agreement has been reached at an early stage experience tells us that it is less likely for the current or former landowner to make representations (objections) or seek to pursue a legal challenge regarding the project in question – therefore de-risking the project/scheme for the acquiring authority.

So a successful “sale under shadow” can be advantageous for all parties.

Our role is to ensure that our clients’ legal interests are protected and that these are not “undersold” unwittingly. This means assessing whether there may be a qualifying blight claim in future and, if so, what package of statutory compensation may, or will, be available in future. Therefore enabling our clients to make an informed decision, all with the view of securing the most favourable outcome for our clients.

How can Holmes & Hills help?

Assessing statutory blight

Confirming whether statutory blight applies now or could arise in future, and advising on the steps needed to meet the criteria so clients can make an informed decision about whether to wait or act.

Evaluating eligibility for Discretionary Purchase

Determining whether a client may qualify for a Discretionary Purchase application now or later, helping them relocate at a timescale that suits their personal or financial circumstances.

Identifying planning and development factors

Reviewing planning law issues and development potential that may influence the property’s value and the strength of any claim.

Assess supporting evidence

Identifying and evaluating the documentation needed to support a strong Discretionary Purchase application.

Preparing and submitting applications

Drafting, refining and finalising Discretionary Purchase applications to maximise the prospect of approval.

Managing successful applications

Progressing and concluding approved Discretionary Purchase matters efficiently and with minimal disruption to the client.

Handling related property transactions

Managing any associated sale or purchase through our specialist property lawyers experienced in CPO/DCO‑related transactions, ensuring the process aligns with the client’s preferred timetable.

Drafting and negotiating legal agreements

Dealing with option agreements, deeds of easement, licences to enter, confidentiality agreements, settlement agreements and other documents required as part of CPO/DCO negotiations.

Get Expert Legal Advice

Call 01206 593933 and speak to our specialist Planning and Development Team. 
Or send an email

Key Contact

Michael Harman

Partner

mjh@holmes-hills.co.uk

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