Assets of Community Value: The Key Issues for Residential Developers
One issue that developers need to be aware of is the legislation surrounding Assets of Community Value (otherwise known as ACVs). These provisions arise out of the 2011 Localism Act but only came into force in the autumn of 2012 and their effect is now being felt.
Q: What is an ACV or Asset of Community Value?
An ACV can be either land or buildings where the primary function is (or in the recent past has been) to further the social wellbeing or social interest of a local community and that this is capable of being continued. Pubs, leisure facilities, libraries and village halls are all examples of potential and listed ACVs.
Q: How can I find out if a property is an ACV?
A successful application to register a property as an ACV by a community interest group (for example a Parish Council) will be noted in the land charges register at the relevant local authority and a restriction on any dealing with the title to the property unless it is made in accordance with the relevant regulations will appear on the title document.
Q: How long will the property remain listed as an ACV?
The listing lasts for five years but a fresh application could be made at the end of this period.
Q: What is the effect of the ACV Listing on a property I wish to purchase for redevelopment?
The current owner must notify the local authority of its intention to sell and they will then notify the group that applied for the property to be listed, as well the community. There follows a six-week window for the community to express an interest in buying the property. If no interest is shown, the owner is then free to sell on the open market for a period of 18 months (less the six-week period). If interest is registered, then the owner must wait six months before selling (or contracting to sell) to allow the community interest group time to put together a bid to purchase the property. Any sale made in contravention of the regulations is of no effect. The owner is not however obliged to accept any such bid.
For further information on assets of community value or issues related to this topic, please contact IBB’s residential development solicitors on 01895 207803, or email us at firstname.lastname@example.org. Alternatively please visit https://www.ibblaw.co.uk/service/residential-development.
For more information on related topics please visit the respective pages below:
Partnership and Collaboration Agreementshttps://www.ibblaw.co.uk/service/residential-development/partnership-and-…
Property Development Financehttps://www.ibblaw.co.uk/service/residential-development/property-develop…
Third Party Retained Rights Over Landhttps://www.youtube-nocookie.com/watch?v=IiQCKQzGcbc
The Residential Development Team, IBB Solicitors Capital Court,30 Windsor Street, Uxbridge, Middlesex. UB8 1AB
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