The Community Right to Bid was introduced under Part 5 Chapter 3 of the Localism Act 2011. The Assets of Community Value (England) Regulations 2012 provide further details of the legislative requirements.
Localism Act Chapter 3
Assets of Community Value (England) Regulations 2012
The legislation does not give community groups a right to buy assets but it does provide them with a period of time to prepare a proposal and raise the funds required to put in an offer. The sale takes place under normal market conditions and the owner is under no obligation to sell to the group.
Help is available to groups who wish to nominate or bid for a building or other land from the following:-
Nominations must be in writing. An Application form is available on the Council website or by contacting Mark Bieganski, Corporate Landlord Services, 4 Ednam Road, Dudley DY1 1HF.
Nominations will need to include
A description of the nominated asset including its proposed boundaries clearly marked
Information which the nominator has about the names of current occupiers and the names and current, or last known addresses of all those holding a freehold or leasehold estate in the land
Reasons why the land is of community value and
Evidence that the nominator is eligible to make a nomination
The evidence you send us to support your nomination, enables us reach a decision on whether the asset is eligible for inclusion in the list of assets of community value. You should consider including:
Evidence that demonstrates the nominator is eligible to make a nomination
Memorandum of Association
Articles of Association
Companies House return
Constitution / Terms of reference
Interest Statement for Community Interest Company
Information showing the boundaries of the asset being nominated – for example through one or more of the following:
a drawing or sketch map with boundaries clearly marked in red – web sites which might help you in plotting boundaries include: http://maps.google.co.uk/ and
a written description with ordinance survey location, and explaining where the boundaries lie, the approximate size and location of any building/s on the land and details of any roads bordering the site.
Where the land is registered, the Land Registry Title Information document and map with boundaries clearly marked in red (less than one month old). Provision of Land Registry information is not essential but it may help us to reach a decision on the nomination more quickly.
Once a nomination has been received and a decision has been made as to whether it is an asset of community value we will publish the details on Dudley councils website. Two lists will be available one will show assets that have been successfully nominated and have been included as assets of community value and one will show a list of unsuccessful assets and the reason for that decision.
If you require a hard copy version of the lists this will be available for viewing at The Council House, Reception, Priory Road, Dudley, DY1 1HF or by contacting Mark Bieganski on 01384 816846.
Assets will be listed for a period of five years and be notified to the Land Registry as a registered restriction in the land register for the land (and a Local Land Charge).
If the owner of the land or building wishes to sell an asset which is included in the list of assets of community value and it is not an exempt disposal, they must notify the council in writing of their intention to do so.
The notification should be sent to: ACVenquiries@dudley.gov.uk or to Mark Bieganski, Corporate Landlord Services, 4 Ednam Road, Dudley DY1 1HF.
There are certain exceptions, where the local authority will not need to know if the disposal is taking place for example:-
disposals that are gifts;
disposal to a local community interest group where explicitly allowed.
transmission of the asset under the terms of a will or intestacy; or to raise money to satisfy other entitlement under the will or intestacy, or to pay the deceased person's debts, taxes, or costs of administering the estate;
transfer between family members, defined for these purposes as spouses or civil partners, or persons descended from the same grandparents (including relationships by marriage);
a disposal with other land;
a person joining or leaving a partnership;
disposal of land under bankruptcy or other insolvency proceedings.
There are various other exceptions in Schedule 3 to the Assets of Community Value (England) Regulations 2012.
Note however that even if a transfer falls within one of the exceptions, the new owner has to notify the Council that the transfer has taken place, giving their name and address. An owner must also notify the Council if he or she applies for first registration of unregistered land that is on the Council's list. Disposal of listed land in breach of the procedures will be ineffective, unless you have made all reasonable efforts to find out if the land is listed, and are unaware of it at the time of disposal.
Yes, there is nothing to prevent the owner actively marketing the asset during the moratorium period, the restriction refers only to exchange of contracts on the sale of the asset.
Yes, where the owner and a community interest group are able to agree terms within the six month period, they may proceed with the sale without waiting for the moratorium period to end.
Yes, an owner may be entitled to claim compensation for loss or expense incurred as a result of listing the asset which would be likely not to have been incurred if the land had not been listed. A claim must be made in writing to the Council within thirteen weeks after the loss or expense was incurred, or finished being incurred. The owner should state the amount of compensation sought, and include supporting evidence.
Claims to be sent to the Head of Corporate Landlord Services for consideration by the Strategic Director - Place, Council House, Dudley, DY1 1HF.
The right to bid is a statutory requirement, that includes any type of publicly or privately owned community land or buildings. The process is defined in the Localism Act and the asset can be sold for market value.
Community Asset Transfer is a policy that is encouraged by the local authority and refers to public sector assets only. The process is defined by the council and is subject to negotiation. The value of the asset is usually negotiated at an undervalued rate and the terms are negotiable.