Mortgage on a property to be demolished?

[Animal]

Hi All,

Went to look at a flat on an estate that I've subsequently found out is going to be undergoing a large-scale regeneration programme imminently (led by the local authority, starting later this year and lasting until 2021). The block I was looking in is due to be demolished and property owners will be offered the chance to buy a property in one of the replacement blocks.

How does this affect mortgage applications?

Would appreciate feedback, ta!

[Sir Bagalot]

Sounds like they will do a compulsory purchase order then.... Not good

[Animal]

Sir Bagalot said:

Sounds like they will do a compulsory purchase order then.... Not good

Why not good? CPO looks to be 110% of market value plus first dibs on a new property of comparable size.

[mcflurry]

Why wouldn't the seller hold off and get an extra 10% ?
Who determines the "market price" ?

[TheRealFingers99]

Talk to the mortgage companies: I once had a mortgage refused because the ptoperty was to be CPOd, but that was years ago. There may be some kind of clause where you have to have been in the property for a given time before you can get the "extra" bits of a "super" CPO offer.