CIL payment on 15 year old development?

CIL payment on 15 year old development?

9:40 AM, 25th October 2021, About 2 years ago 5

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Hi, any advice would be appreciated. I am selling a flat in a small development. The buyer’s solicitor has asked for proof that the Community Infrastructure Levy was paid.

As far as I know, this is payable by the landowner or developer at the start of the build. They are implying, if it has not been paid, it could be passed on to leaseholders.

The Council is not responding, they are slow at the best of times.

I am not quite sure how to counter this, as both solicitors are insisting this is a possible problem.

Many thanks

Karin


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Comments

Gavan Croucher

10:12 AM, 25th October 2021, About 2 years ago

As far as I am aware CIL was introduced in 2010 so if this development is 15 years old I'm not too sure why CIL is payable. Is it instead a 106 agreement for Affordable Housing?

Judith Wordsworth

10:46 AM, 25th October 2021, About 2 years ago

As Gavin Couchet said the CIL came into force in April 2010.
https://www.gov.uk/guidance/community-infrastructure-levy
Have a look at these https://www.planningresource.co.uk/article/1121218/cil-watch-whos-charging-what
And
https://www.withersworldwide.com/en-gb/insight/community-infrastructure-levy-three-years-on

It interestingly is also a discretionary charge by local authorities.

Joseph Lee

9:10 AM, 26th October 2021, About 2 years ago

Have you asked your solicitor for the cost of indemnity insurance against it. Sometimes the price of the insurance is so cheap it's easier than actually working out the answer.

Solicitors sometimes fail to tell you this

Marie

14:52 PM, 26th October 2021, About 2 years ago

Reply to the comment left by Gavan Croucher at 25/10/2021 - 10:12
Who knows what the arrangement was, but why is the solicitor asking the question as it has nothing to do with leaseholders.

Jessie Jones

12:31 PM, 30th October 2021, About 2 years ago

It would appear to me that over recent years there has been a focus during conveyancing on ensuring that purchasers cannot be held liable for historic actions or liabilities of previous homeowners.
There used to be a similar requirement for chancel indemnity insurance so this is nothing completely new.
In the absence of proper paperwork, the easiest way of dealing with this is via 'indemnity insurance'.
Areas where home owners do not always have a good paper trail include planning permission for driveways, dropped kerbs, party wall alterations (removal of chimney breasts), loft conversions and probably many others. I would hate to think what paper trails you might need for a listed building or in a conservation area.
Indemnity Insurance is a relatively cheap way of dealing with this, as it protects the purchaser if, say, the council were to insist that a driveway, or rear extension that was built 5 years ago, didn't have the necessary permissions.
It is normal for the seller to pay for this as it is their responsibility to have kept the necessary paperwork.
As others have said, it is sometimes easier just to buy the insurance rather than deal with the Council. Imagine asking them for copies of proof of this levy having been paid, them not finding it and the can of worms that might open.

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