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!

[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.