THERE IS NOW ANOTHER INFRINGEMENT ON THE FREEDOM OF OWNING A PUB – AN ASSET OF COMMUNITY VALUE LISTING
The Localism Act 2011 became law in September 2012 and amongst new legislation aimed at giving more regional control to Local Authorities and the community includes the Community Right to Bid.
In the case of a pub, owners are notified by their Local Authority (LA) if their building has been nominated as an Asset of Community Value (ACV). The first an owner may know of this will usually be when the letter drops on the doormat.
A community group (complying in its formation with the Regulations of the Act) or a parish council can fill out a form available to download from the LA’s website and nominate your pub to be listed as an ACV. Sometimes this is done to prevent the pub being developed into another use such as a residential dwelling so that the community facility is lost.
If the LA approve the listing the owner of the pub cannot, by law, sell the property to anyone other than a community group for a period of 6 months (known as the moratorium period) from the date the sale was initiated as long as the community has indicated that it wishes to bid (exemptions may apply – please telephone for details).
The ACV listing is also registered against the title of your pub with Land Registry for 5 years and remains so until the listing is revoked. Some national estate agents consider that this restriction reduces the market value of your pub and makes it more difficult to sell. In some cases lenders have been known to decline an application for a loan to purchase a pub because of the 6 month restriction on who they can sell to in the event of the pub being repossessed (exemptions may apply).
MANY OWNERS CONSIDER THAT THIS LEGISLATION IS AN ENCUMBRANCE ON THEIR FREEDOM TO TRADE AND THE LAW SHOULD BE CHANGED.
What can owners do when their pub are nominated or listed as an ACV?
It is possible for an owner to submit an objection at nomination stage but not all LA’s make this facility known to the owner. It is the law, however, for owners to be allowed to request a review of a decision to list their pub as an ACV. In these instances owners are advised to take professional advice as to how an objection to the listing should be compiled and submitted.
WE SPECIALISE IN DEALING WITH AN ACV REVIEW ON YOUR BEHALF – PLEASE TELEPHONE FOR MORE DETAILS 01647 440033
If the review of the decision upholds the decision to list it is possible for the owner to appeal to the First-Tier Tribunal where a judge will decide if the decision was correct. Again, we are experienced in representing owners at these hearings and can discuss with you on the telephone how it works.
THE ACV LEGISLATION CAN BE A COMPLEX AFFAIR WHICH MAY HAVE AN ADVERSE EFFECT ON YOUR INVESTMENT. WE CAN PROVIDE A FREE DETAILED APPRAISAL OF YOUR SITUATION IF YOU CALL US ON 01647 440033
YOU HAVE ABSOLUTELY NO OBLIGATION TO INSTRUCT US TO ACT ON YOUR BEHALF. OUR INITIAL ADVICE IS COMPREHENSIVE AND FREE.