The reason for this post is to provide a simple overview of what a Blight Notice is and how to ensure it is accepted by the acquiring authority. A Blight Notice is the formal process of forcing an acquiring authority to purchase a property impacted by a utility or infrastructure scheme.
This post is written with HS2 in mind owing to the number of Blight applications submitted to them and the experience gained from acceptances of Blight Notices and some rejections.
Even if the scheme is scrapped some properties could still be blighted.
WHY IS A BLIGHT NOTICE IMPORTANT?
The serving of a Blight Notice is a fairly simple process; however, if served incorrectly it can result in a property not being purchased by an acquiring authority and a red mark against the applicant if it was resubmitted.
As HS2 north of Crewe steams ahead through parliament and development commences south of Crewe, the more real the high-speed railway becomes and with that the years of uncertainty for those whose properties are near the route.
In some cases, the property may well be acquired at a later date but providing the application meets certain criteria the owner or occupier can receive the un-blighted value of the property (i.e. the open market value as if the scheme was not happening), a home owner payment of 10% (maximum of £81,000 as at November 2023), moving costs, Stamp Duty Land Tax of replacement dwelling, and professional costs.
See below our TOP TIPS:
1. Ensure you have a qualifying interest in the property.
This includes;
- Freeholder
- Leaseholder with at least 3 years on the lease
- Private residential property or an agricultural unit which
- Business premises with a rateable value less than £36,000
All of the above must be fully or partly safeguarded (i.e. land or property which is identified for major infrastructure projects is protected from conflicting developments)Â land which has been identified for major infrastructure projects
You will require evidence of the above requirements such as leases, property deeds, or proof the holding is agricultural such as trading accounts or tax returns.
2. Be able to demonstrate you occupy the property
For residential, business and agricultural holdings you must have occupied the property for at least 6 months prior to submitting the application. A utility bill or bank statement can be used to evidence this.
A representative of an occupier who has died can also apply; however the deceased must have lived at the property at least 6 months before the date of death. Submitting an application on behalf of a deceased is tricky to say the least, and we recommend obtaining all documents as soon as possible.
If you personally own a commercial building that is let out to your Limited Company, you are not the owner occupier even if you are the Director or Shareholder. The Limited Company may be able to serve a Blight Notice if the lease has more than 3 years; however you as the owner would not be able to do so.
3. Confirm the property is fully or partly within the safeguarded area
If the property is not fully or partly safeguarded a Blight Notice will not be accepted. There are maps available online to determine if a property is safeguarded, it is also beneficial to confirm with HS2 property agents what proportion of the property is within the safeguarded area.
In certain circumstances HS2 may only agree to acquire the land needed for the scheme and in this instance you could claim material detriment and request that the acquiring authority should take the whole of the property.
Providing maps and plans of the safeguarded area to accompany the application can assist in detailing the impact of the scheme.
4. Provide evidence of all reasonable endeavors to sell
In normal circumstances for a Blight Notice to be accepted the applicant must have actively tried to market the property for sale and then prove they are unable to do so, as a result of the scheme.
As part of the express purchase scheme with HS2, which a standalone HS2 compensation scheme. If over 25% or part of the residential property is safeguarded you do not have try and sell the property.
All reasonable endeavors means physically trying to sell the property, i.e. instructing estate agents, having sales particulars and viewings. However some agents may refuse to do this on the basis they are aware it is just an exercise, you should document any negative feed back from viewings or agents. If agents propose unreasonable terms such as up front marketing costs or unreasonable costs, this proves you have tried marketing the property. We would recommend contacting at least three estate agents.
5. Ask for help
HS2 have produced a number of very useful publications with guidance on how to apply and what documentation to provide. The biggest issue is when the wrong or expired documents are provided. Only certain documents can be used to prove ownership and occupation. HS2 have to make a decision on the Blight Notice application within 2 months of submission. In some cases, they may ask for a withdrawal and resubmission, all of which takes time.
In most circumstances HS2 will cover the professional costs involved in submitting a Blight Notice and selling the property to HS2.
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Serving a Blight Notice correctly can result in your property being acquired years in advance of the scheme, and additional disturbance payments may not always be available under HS2 discretionary schemes. If you would like any assistance in discussing a Blight Notice please do not hesitate to contact us.
01829 423 183