Bidding to buy the asset
When can a community group buy the asset?
Even if an asset is listed as being of community value, it does not mean that the owner must sell up straight away. If the owner of a listed asset decides that he/she would like to sell the asset, they must inform the local authority in writing. There are certain conditions or types of disposal which will be exempt – more detail on these exemptions is in the regulations.
Moratorium period
Once the owner has notified the local authority of their intention to sell the asset, the local authority will inform the organisation who made the original nomination. An interim moratorium period of six weeks then begins. During this time the community organisation must decide whether it is interested in bidding for the asset or not. If they are, they must inform the local authority in writing of their intention to bid.
At the end of the six weeks, if a written intention to bid has been received, the local authority must inform the owner and the community organisation that the full moratorium period will apply. This is a further four and a half months (taking the moratorium period to six months in total).
During this full moratorium period, the community organisation can prepare a full bid, and negotiate directly with the owner. If the owner wishes, it can sell to the community organisation at any time during this period. The owner cannot sell to anyone else until the end of the six months.
Selling the asset
At the end of the moratorium period, the owner is free to sell the asset to whomever they wish. They do not have to sell to the community group, and can sell at the price they want.