An ACV – what is it?
Local authorities are required to compile a list of assets which are of value to the local community. Your property may be listed as an asset of community value (ACV) if it is a building, or other land, the main use of which furthers the social well-being or social interests of a local community.
If you’re not happy with the local authority’s decision to list your property then you have an 8 week period within which to request a review, but the property will remain listed during this time.
If no appeal is made, or is unsuccessful, the property will continue to be listed. Once listed, if you wish to dispose of it, then it is important to note that the Localism Act 2011 places restrictions on its disposal and also gives the community a right to bid for the property.
So, what must I do if I want to sell an ACV?
If you wish to sell a property which has been listed as an ACV, then you must notify your local authority of your intention. Unless an exemption applies, you will then only be able to dispose of your property after a specified period has expired.
The first specified period is 6 weeks, within which the local community will be asked if they would like to purchase your property. If they say no, you will be able to continue with your disposal without any further delay. However, if the local community wishes to purchase your property, the 6 week period will extend into a 6 month moratorium to allow the local community time to raise the funds to make a bid to purchase your property.
During this 6 month moratorium you will be able to market and negotiate the sale of your property. However, you cannot exchange contracts unless it is to sell your property to a community interest group. At the end of the 6 month period, you can consider the community’s bid in competition with any other offer you may receive and you’re free to sell to whomever you like and at whatever price.
Avoid a void!
If you dispose of your property without following these rules then, save for limited circumstances, it will result in the sale being void! So play it safe and follow the rules.