Assets of community value

Once an asset is included on the register, nothing further will happen unless and until the owner decides to dispose of the asset. This is either through -

• a freehold sale
• the grant or assignment of a lease, granted for at least 25 years

Listing of a property as a Community Asset is a Local Land Charge. A non-compliant disposal of property is ineffective and void from the outset. The effect of this will be that the ownership of the land has not changed hands.

Unless the proposed disposal falls within an exemption, for example, a transfer -

• made by gift
• within a family
• due to inheritance
• where the listed community asset forms part of a larger estate

the owner will only be able to dispose of the asset once the following steps have been completed -

• in an interim period of 6 weeks community interest groups will have the opportunity to express a written intention to bid. If no group expresses a written intention to bid in this period, the owner is free to sell their asset
• if a community interest group does express an intention to bid during this interim period, then a 6 month moratorium applies during which they can prepare a bid. At the end of the 6 month moratorium, the asset owner retains all their usual rights to dispose of their asset as they wish. No further opportunity to bid is available to community interest groups for a protected period of 18 months
• where a community group wishes to purchase a community asset and is able to pay the price determined by the owner, the owner will have the option of disposing of the community asset to that group. They do not need to wait until the end of the moratorium to do so

Compensation

Compensation may be paid to an owner of land, other than a public authority, who has incurred loss or expense in relation to the land which would not have been the case if it had not been listed.

Any claim for compensation must be made to the local authority within 13 weeks of the end of the interim or full moratorium period. The owner may request a review of a decision relating to compensation by the Local Authority.

There is a subsequent right of appeal to the First Tier Tribunal.

HM Courts and Tribunals Service
First-Tier Tribunal
3rd Floor, Temple Court
35 Bull Street
Birmingham
B4 6EQ