Resisting a Nomination to make a Property you own an Asset of Community Value
Looking back on 2022, one of the more unusual matters on which I advised was resisting a nomination for our client’s property to be listed as an Asset of Community Value. In this post, I wanted to share the story and offer some advice and guidance for people in a similar situation.
Legislation allows any member of a community to nominate a property to be listed by the local authority as an asset of community value. These are typically things like playing fields or other sports facilities, and in our case, a local neighbourhood pub.
If the property is listed as an ACV (Asset of Community Value), the main implication for the owner is that the property cannot be sold without it first being offered to the community for it to purchase it and there is a six month moratorium to allow it to raise funds to buy the property. This can be seriously detrimental to the owner and create complications in the process of buying and selling commercial property.
In our case, the client received a notice that its property had been nominated to be an asset of community value, and it was essential to object to this within a strict deadline. With the help of a leading KC (King’s Counsel) in this area, we objected to the nomination on the grounds that the pub was not truly of local value and the local authority agreed.
Our client was therefore able to proceed with the sale of the property as part of a redevelopment of the area with no further complications.
What is an Asset of Community Value?
Assets of community value are defined as property or land which are used to further the wellbeing and interests of the local community in both the past and the future. These more often than not all have significant cultural value to the areas they’re located in.
A few examples of common properties that are assets of community value include pubs, shops and libraries, as well as things like community and health centres. Even things like allotments, bike paths and campsites can also be considered.
So long as historical and future community value can be proven, almost any property can be nominated as an asset of community value.
The Benefits and Drawbacks of Asset of Community Value
The main purpose of assets of community value are to allow communities to maintain areas of cultural and social significance, giving the local community a fair chance to make a bid to buy the property on the open market should it be put up for sale.
One of the main benefits of listing a property as an asset of community value is that you can essentially hit pause on any sale in progress to allow the community time to make a bid, so that the property is taken on by people who care about maintaining its importance and value to the community.
These benefits, however, can also be negatives, as having a six month waiting period on the sale of the property could be of huge detriment.
Specialist Legal Advice and Guidance
When it comes to deciding whether or not you want a property you own to be an asset of community value, seeking specialist legal counsel is always advised as soon as possible to make sure you have all the information available to you.
Our team of solicitors have extensive experience in handling a wide range of cases and matters relating to assets of community value. For any advice or assistance in handling a similar case don’t hesitate to get in touch with a member of the team. We can offer our services in both the South and London.
How can we help?
When you submit this form an email will be sent to the relevant department who will contact you within 48 hours. If you require urgent advice please call 01202 525333.