If your home is part of a redevelopment area the government body that is purchasing the land will have to pay you the current market value of the property. Unfortunately, the market value may not be the same as what you paid for the property. If you owe more on your mortgage than your home is currently worth on the open market you will be responsible for paying back any extra money to your mortgage lender. You won’t get any compensation for this shortfall.
You can receive further compensation for any disturbance associated with having to sell your home. This will only apply if you actually live in the property which you are being forced to sell. You can claim for any reasonable costs associated with having to leave your property, such as
- cost of hiring a removal company
- legal fees and stamp duty you have had to pay to buy a new property
- disconnection and reconnection of utilities.
You can’t claim for the actual cost of purchasing a new property or for the cost of renting temporary accommodation. You can only claim for costs which you have actually incurred.
Home loss payments
If you are living in a property that is subject to a compulsory purchase order you may be entitled to a home-loss payment on top of any other compensation.
This payment recognises the distress and discomfort of having to move. You have to meet certain criteria in order to receive a home-loss payment.
- You must have lived in the property as your only or main residence for at least one year before you had to move out and
- you must have had a legitimate right to occupy the property as the owner or tenant.
Most claimants who are entitled to a home-loss payment will receive a flat rate of £4,500. If you are the owner of the property or you have a lease with at least 3 years left to run you can claim 10% of the value of your interest in the property up to a maximum of £45,000. The minimum you will receive is £4,500.
You must make a claim for a home-loss payment in writing and within 6 months of the day you moved out of the property. If you've lived in the property for less than a year, you may still be entitled to some compensation but you may not get the full £4,500.
Owners and tenants with a disability
Where your property had been adapted because you have a disability your compensation should reflect the cost of providing or modifying a similar property.
If you are a tenant with a disability and your current landlord is unable or unwilling to provide you with another suitably adapted property the Housing Executive may rehouse you and carry out any necessary adaptations to make your new home suitable.
The Housing Executive must rehouse you if your home is part of a redevelopment scheme. You will be assessed using the 'selection scheme' .
You can be rehoused in:
- existing Housing Executive accommodation
- existing housing association accommodation
- one of the new houses in the redevelopment area
You are entitled to three reasonable offers of accommodation. The accommodation must be suitable for your needs. You will usually only be rehoused once the Housing Executive needs to knock down the property. You shouldn't have to leave your property as soon as the Housing Executive decide to redevelop the area.
Contact a local advice agency for more information on your rights if your area is being redeveloped.