Home Relocation Assistance Scheme - Airport Mediation - Home

Home RelocationAssistance SchemeAssistance with relocation forhome owners within areas ofhigh-level aircraft noiseJuly 2006

Using this bookletUsing this bookletOnce you have read this booklet, if you have any questionsabout your eligibility for this scheme, there are answers tosome Frequently Asked Questions at the back. There are alsoother contact details for you to use, in case you can’t find theanswer you need.james_hatfield@baa.com or telephone 01279 663741.If you or someone you know would like a copy of thisbooklet in an alternative format, please call 0800 731 4247.BAA Stansted Home Relocation Assistance Scheme 2006

2Our consultationOur consultationThe Future of Air Transport White PaperIn its White Paper, The Future of Air Transport (December2003), the Government asked airport operators to offerrelocation assistance to households subject to high levels ofnoise (in the 69 decibels Leq contour).What we consulted onIn September 2004, through the booklet Protecting AgainstAirport Noise, we consulted with local people – residents,MPs, local councils and other organisations – on the bestway to provide relocation assistance for households in thearea of high levels of aircraft noise. The consultation wasinitially open for 12 weeks, and at the request of localpeople, was later extended by a further three weeks.We proposed a voluntary scheme for eligible householderswho wanted to move because of aircraft noise, whichwould provide a financial package to help them with thecosts of moving away from the area.We proposed that the package should be made up of apercentage of the open market value of the property, plusa lump-sum payment, which would be linked to the RetailPrice Index. We suggested a cap of £10,000 on thepackage.Questions we asked youWe asked for general comments. We also asked for yourviews on some particular issues that we knew were aconcern, because we did not want to assume that wealready knew the answer.The questions1 Is the relocation package formula of 1.5% of thehouse’s sold value, plus £2,500 acceptable?2 Is a cap of £10,000 on the package reasonable?3 Should the initial scheme run for five years, allowing areview in 2010?4 Do you agree that there should be qualifying criteria,designed to prevent unfair speculation in the localmarket?5 Do you have any other comments or suggestions aboutthe Home Relocation Assistance Scheme?How we consultedThe aim of the consultation was to gauge the opinions oflocal stakeholders so that we could improve on ourproposed scheme, engage with specific groups withparticular concerns, and have an open line ofcommunication with people directly affected by theGovernment’s proposals.We have not made any assumptions about the views ofthose who did not respond to the consultation. Asexpected, some views were expressed by small numbers ofpeople.There are Government guidelines on the best way toconduct a consultation, which we have followed, andcontinue to do so:• Consult widely throughout the process, allowing aminimum of 12 weeks for written consultation at leastonce during the development of the policy.• Be clear about what your proposals are, who may beaffected, what questions are being asked and thetimescale for responses.• Ensure that your consultation is clear, concise andwidely accessible.• Give feedback regarding the responses received andhow the consultation process influenced the policy.• Monitor your department’s effectiveness atconsultation, including through the use of a designatedconsultation co-ordinator.We consulted on two schemes to protect the localcommunity from aircraft noise: this scheme (which we arecalling the BAA Stansted Home Relocation AssistanceScheme) and a separate scheme to provide noise insulationfor noise-sensitive buildings, such as schools and hospitals.This booklet is only about the BAA Stansted HomeRelocation Assistance Scheme.The consultation paper was sent directly to 246 potentiallyaffectedpeople and organisations around Stansted:• residents• MPs• county, district and parish or town councils• Uttlesford Association of Local Councils• Uttlesford NHS Trust• Stansted Airport Consultative Committee members• East of England Regional Assembly• East of England Development Agency• Go-East• Council of Mortgage Lenders• Country Land and Business Association• airlines.Of that 246, we received 9 submissions. We also receivedanother 9 from people or organisations not directlyconsulted by BAA Stansted.To encourage people to respond, so that we could hear theviews of as many people as possible, by sending theBAA Stansted Home Relocation Assistance Scheme 2006

Our consultation3consultation document direct to homes and businesses, wealso publicised the consultation with all local and regionalmedia including TV and radio, posted it on our website, atwww.baa.com/stanstednoise, and briefed the StanstedAirport Consultative Committee and the Stansted AirportAdvisory Panel of Uttlesford District Council.How we analysed the responsesAt the beginning of this booklet, our Managing Director,Terry Morgan, emphasised the importance we place ontransparency. It is important that you are able to see howwe have come to the decisions that we made.For that reason, this section sets out BAA’s decision-makingprocess. We know that this is interesting to some people,although not to everyone. It isn’t necessary to read this tounderstand how the scheme will work.The diagram below simply sets out our process for makingthese decisions.BAA proposal to public 21 September 2004Consultation responses to Avia Solutionsfor analysis January 2005Avia Solutions report findings to BAA Policy ReviewWorking Group January-March 2005BAA Policy Review Working Group examines alloptions and makes recommendations to BAAProtection Policies Group April 2005The diagram shows several groups. We need to explainwho they are:Avia SolutionsAvia Solutions is a consultancy, and was appointed by BAAto analyse the consultation responses for all the BAAairports involved. We believed it would be better for anexternal company to do this work, so that it could beexternally verified.BAA Policy Review GroupThis is a group of managers from BAA’s affected airportswho work in the community liaison, property, legal andplanning departments. They analysed Avia Solutions’findings, tested a range of variations to the scheme andcarried out supporting research on the various options.They then made a series of policy recommendations to theBAA Protection Policies Group.BAA Protection Policies GroupThis is the more senior decision-making body. It is chairedby BAA’s Chief Executive and comprises corporate directorsresponsible for planning, finance, regulation and publicaffairs. It examined the policy recommendations and madethe final decisions about the shape of the scheme.How we respondedThis section is about the issues you raised during theconsultation process and how they influenced our thinking,and ultimately, the final shape of the scheme. We brieflyindicate in the boxes how we responded to theconsultation responses, but the full detail is in the nextsection, on pages 4 to 5.We have not identified the comments made by any singleperson or organisations here, for reasons of confidentialityand data protection.Question 1Acceptability of the relocation package at 1.5% of thehouse’s sold value, plus a £2,500 lump sumOnly 1 (6%) of Stansted’s 18 respondents supported thepackage; 13 (72%) did not.Number of respondentsBAA Protection Policies Groupmakes final decisionsSupported 1No response 4Airports finalise local details May-June 2005Did not support 13BAA Stansted Home Relocation Assistance Scheme 2006

4Our consultationThese are some of the views that were expressed:• 2 respondents said that the amount of compensationwas too low, not covering the cost of moving, whenstamp duty on buying a new house in the higherbracket (over £250,000) was accounted for.• 1 campaign group welcomed the principle of thescheme, but again, thought the financial amount mightbe too low.• A few local authorities said that BAA ought to purchase(not just offer compensation for moving) homes insidethe eligible noise contour, and added that tenants aswell as homeowners should qualify for this scheme.• Local authorities also added that costs should takeaccount of estate agents’ and solicitors’ fees, forexample.Our responseThe financial compensation package is too low.We have doubled the lump-sum element of thepayment from £2,500 to £5,000.The scheme should cover all moving costs and stampduty on a new home.The aim of the scheme is to provide assistance forthose eligible home owners in the 69 decibel Leqnoise contour who want to move away. It is notdesigned to cover all moving costs, although weestimate that the package will meet the whole ormost costs for a large number of home-owners.Non-residential properties and tenants.The scheme is designed to help home-owners tomove to a quieter area if they want to. There is noobligation either to move out of or to move into thearea.Question 2Acceptability of the £10,000 cap on the relocationpackageAt Stansted, one (6%) of the 18 respondents said that thecap of £10,000 was acceptable; 14 (77%) said that it wasnot.The comments in this section focused on how the cap onthe package affected people with more expensive homes:• 2 respondents suggested that the cap should be indexlinked• 1 respondent said that higher value homeownersshould not be penalised, and another that all movingcosts should be paid for.Our responseThe level of cap.We have increased the maximum cap from £10,000to £12,500. We feel that this, in combination withthe doubling of the lump-sum part of the package,from £2,500 to £5,000, is a substantial increase onour original proposal.Index-linking.We have also agreed to keep appraised of anyincreases in the movement of property prices in theaffected area so that if appropriate, we will be able toreview the scheme sooner than the agreed five years.We will definitely review the scheme after five years.What the package should cover.As stated earlier, the aim of the scheme is to provideassistance for those eligible home owners in the 69decibel Leq noise contour who want to move away. Itis not designed to cover all moving costs, althoughwe estimate that the package will meet the whole ormost costs for a large number of home-owners.Short-term tenants are not included in the schemebecause it is designed to help home-owners realisethe large asset that is their home. Their moving costsare significantly higher than those of tenants. Certainlong-term leaseholders will be eligible (see page 6 ofthis document).BAA Stansted Home Relocation Assistance Scheme 2006

Our consultation5Question 3Should the initial scheme run for five years, with areview in 2010?11 (61%) of Stansted’s 18 respondents agreed with thisproposal, but 2 (11%) did not.• The majority of respondents thought that a review after5 years would be satisfactory• 1 respondent thought that the review should take placein 2008 but did not state a reason• A group of local authorities commented that thescheme needs to be improved, although a review afterfive years was considered reasonable. They suggestedthat the scheme should run in perpetuity and wouldneed constant reviews to take account of airportdevelopment.Our responseCertain landlords.Landlords had previously been excluded from theproposed scheme, but we recognised somecircumstances in which some landlords may beeligible. For instance, someone may own a property inthe area but is working away and renting out thefamily home.We therefore decided to open the scheme to suchlandlords, providing that this is their only UK property.We will require a statutory declaration, witnessed by asolicitor, that this is your sole UK property and wemay wish to see some evidence of tax status for thoseworking abroad. Our principle will be one person, oneproperty, one assistance package.Our responseReview dates.As stated above, we have agreed to keep appraisedof any increases in the movement of property pricesin the affected area so that if appropriate, we will beable to review the scheme sooner than the agreedfive years. We will definitely review the scheme afterfive years.Question 4The use of qualifying criteria, to prevent unfairspeculation in the local marketAt Stansted, 12 (67%) of the 18 respondents supportedthe criteria, while 2 (11%) did not.• 12 of the 14 who responded to this question thoughtthere ought to be qualifying criteria to prevent marketspeculation. Few reasons were given, however.• 1 respondent stated that the scheme should notdisqualify those individuals who had recently inheritedproperty.Question 5Other commentsOther comments included:• 3 respondents said that BAA should buy affectedproperties, rather than provide a relocation package. Afew local authorities said that BAA should then use thebuildings for non-noise-sensitive purposes (none weresuggested).• 1 person said that the new runway ought to be built inLuton, where it would “be more welcome”.• 1 respondent thought BAA was offering to buy thehomes, rather than provide help with the cost ofmoving house. They asked questions about the marketrate for purchasing the property.• 1 local authority stated that the 69 decibel contour wastoo high; others proposed that the 57 decibel contourshould be used instead. They stated that this schemewas a “step in the right direction”, but that somechanges need to be made to the scheme.• The concept of offering relocation should beimplemented in a way that prevents anyone “new”owning property in the affected area and beingaffected by noise subsequently.Our responseRelocation assistance or purchase.The scheme is designed to help people to move to aquieter area if they want to: there is no obligation forpeople to move. This scheme is designed to assistwith moving costs, not to reimburse them in full.Use of the 69 decibel noise contour.The White Paper identified the 69 Leq noise contouras the onset of high levels of noise. This is thereforethe contour that we will be using.BAA Stansted Home Relocation Assistance Scheme 2006

6Details of the BAA Stansted Home Relocation Assistance SchemeDetails of the BAA StanstedHome Relocation AssistanceSchemeThis section contains the detail of the Home RelocationAssistance, which includes information on:• What the scheme is designed to do• The area where the scheme applies• Who is eligible for the scheme• What you will get from the scheme, and when• How the scheme works• What you need to do next1. Aims of the Home Relocation Assistance SchemeThe scheme is designed to provide home-owners, who areliving in the 69 decibel contour area as of August 2005,with financial assistance with the costs of moving awayfrom areas of high levels of airport noise. It is a voluntaryscheme and there is no compulsion on anyone to takeadvantage of it. It may be of particular help to people whohave lived in the area for many years, and who have seenthe airport grow significantly in that time.Only one package can be given per person.2. The area where the scheme appliesThe scheme applies to residential properties in the areasaround Stansted Airport which are exposed to high levelsof aircraft noise. In the White Paper, the Governmentdefined this as the area within the 69 decibel Leq noisecontour. BAA is basing its scheme on the 2002 standardcontour. The map of this area is on page 8 of thisdocument.3. Who is eligible for the scheme?There are four main criteria, which must apply forresidential properties within the 2002 standard 69 decibelLeq contour (as shown on the map). These are:i. The type of property and your “interest” in it (whetheryou own it or rent it out)ii.How long you have lived thereiii. Whether you keep a beneficial interest (right ofoccupation) in the house after movingThe diagram on page 7 helps explain whether you areeligiblei. Type of property and your “interest” in it.You are eligible for the scheme if:• you are the owner-occupier of a residential homeor• you are the owner of a house and renting it out, and thisis the only property that you own in the UK. (Note thatwe will require a written declaration, verified by asolicitor, that this is your sole UK property. We may wishto see some evidence of tax status for those workingabroad.)or• you are a long-term leaseholder with at least three yearsleft on your leaseandii. Length of time you have owned and lived in thepropertyYou are eligible for the scheme if:• you have owned, or leased long-term, the property for atleast six consecutive months before the scheme islaunched (August 2005).• you are the owner, or long-term leaseholder, at the timethat you apply for the Home Relocation AssistanceScheme.andiii. Beneficial interestYou must retain no beneficial interest or right ofoccupation of the property for which you receive HomeRelocation Assistance.andiv. Moving to a quieter areaYou are moving to a quieter area. This scheme is intendedto help home-owners to move away from noise, and notsimply to move home. Home-owners who wish to move toanother property in the same noise contour will not beeligible. The scheme therefore applies only to householdsmoving from the 2002 standard 69 decibel Leq shown onthe map in this booklet, to an area outside the standard2002 63 decibel Leq contour. If you want to see where thisarea is, please refer to the Department for Transportwebpage www.dft.gov.ukiv. Whether you move to a quieter area.BAA Stansted Home Relocation Assistance Scheme 2006

Details of the BAA Stansted Home Relocation Assistance Scheme7Please follow the flow chart below to see if you are eligiblefor the Home Relocation Assistance Scheme.4. What you will get from the scheme, and whenIf you have applied for Home Relocation Assistance andyou meet the eligibility criteria, BAA Stansted will pay you,on completion of the sale of your property, or within tenworking days of that date:1.5% of the sale price of your houseplus a lump sum of £5,000up to a maximum of £12,500.The scheme will run for five years, from 2005 to 2010,when we will review it. In the meantime, we will keepappraised of any increases in the movement of propertyprices in the affected area, so that if appropriate, we willbe able to review the scheme sooner than five years if thisis necessary.This scheme starts from August 2005. Any householderwho meets the eligibility criteria set out above, and whowishes to move, will be entitled to the Home RelocationAssistance offered under the scheme.Have you owned theproperty for at least 6months before thelaunch of the schemeand will be the ownerwhen you apply?You can apply for relocation assistance at any time until thescheme expires. The scheme will run for five years fromAugust 2005, when, in 2010, we will review it.The table below gives you an illustration of the amount ofrelocation assistance available for properties of differentprices.Will you retain nobeneficial interest or rightof occupation?Property 1.5% of Lump sum Totalpricevalue£100,000 £1,500 £5,000 £6,500£150,000 £2,250 £5,000 £7,250£200,000 £3,000 £5,000 £8,000Will you move outside the2002 63 decibel Leq?£250,000 £3,750 £5,000 £8,750£300,000 £4,500 £5,000 £9,500£350,000 £5,250 £5,000 £10,250£400,000 £6,000 £5,000 £11,000£450,000 £6,750 £5,000 £11,750£500,000 £7,500 £5,000 £12,5002 All references to the sale or the property should, in the case of longleaseholders, be taken as referring to their lease.BAA Stansted Home Relocation Assistance Scheme 2006

8Area covered by the schemeBAA Stansted Home Relocation Assistance SchemeBAA Stansted Home Relocation Assistance Scheme 2006

9Area covered by the schemeReproduced from OrdnanceSurvey 1:1250 landline, 1:10kand 1:50k Raster by permissionof Ordnance Survey® on behalfof The Controller of HerMajesty’s Stationery Office.© Crown Copyright.All rights reserved.BAA plc, O.S. Licence NumberAL100020071BAA Stansted Home Relocation Assistance Scheme 2006

10How the scheme works5. How the scheme worksThere are four main steps to the process:Step 1Step 2Step 3Step 4Registering an interest in Home RelocationAssistanceChecking your eligibilityApplying for Home Relocation AssistanceReceiving Home Relocation AssistanceThe diagram below will take you through these steps.Step 1Write to the Scheme Administratorto register your interest in HomeRelocation Assistance, using form SAR1(at the back of this booklet).Step 2Receive an in-principle decision onyour eligibility from the Scheme Administrator,and an estimate of the likely relocationsum to be awarded, if applicable.Step 3If you decide to sell, your solictor shoulduse for SAR2 (at the back of this booklet).Step 4The scheme administrator will processthe application and, if all is in order,will aim to pay Relocation Assisstance to yoursolicitor following completion of the sale.Step 1 Registering an interest in Home RelocationAssistanceBefore you exchange contracts on the sale of your house,you can write to the Scheme Administrator to register yourinterest in Home Relocation Assistance, using Form SAR1 atthe back of this booklet.Step 2 Checking your eligibilityThe Scheme Administrator will check your form and writeto you, telling you if we think that you are eligible inprinciple for Home Relocation Assistance. The SchemeAdministrator will also give you an estimate of the likelyrelocation sum to be awarded, if applicable.Step 3 Applying for Home Relocation AssistanceIf you decide to sell your property and move to a quieterarea, your solicitor or conveyancer can make a formalapplication for Home Relocation Assistance on your behalf,using Form SAR2. On, or after, exchange of contracts withthe purchaser of your property, your solicitor/conveyancerwill apply to the Scheme Administrator for HomeRelocation Assistance, sending us a written statementconfirming that the qualifying criteria set out on page 6have been satisfied.Step 4 Receiving Home Relocation AssistanceOnce your solicitor or conveyancer has applied on yourbehalf, confirming that you meet the eligibility criteria, theScheme Administrator will aim to pay yoursolicitor/conveyancer your Home Relocation Assistance oncompletion of the sale of your property, or within tenworking days following notification of completion of thesale of your property.7. What you need to do nextIf you wish to apply for Home Relocation Assistance, youshould:i. Check whether you are eligible (see page 7)ii.When you think you want to move, complete and sendForm SAR1 at the back of this booklet to the SchemeAdministrator to ask for an in-principle decision on youreligibility. Send the form to James Hatfield, SchemeAdministrator, Home Relocation Assistance Scheme,Property Department, BAA Stansted, Enterprise House,Stansted Airport, Essex CM24 1QW. The SchemeAdministrator will then write to you.iii. When you exchange contracts, your solicitor will needto complete form SAR2 and send it to the SchemeAdministrator at the above address. We will thenprocess your application.If you have any questions, you can emailjames_hatfield@baa.com or call: 01279 663741 for furtherinformation.BAA Stansted Home Relocation Assistance Scheme 2006

Frequently asked questions11Frequently Asked QuestionsHere are the answers to questions that you might ask. Wehope you find them helpful. If you can’t find the answeryou are looking for here, please call 01279 663741.Do I have to move?No. This is an entirely voluntary scheme designed to helpyou to move to a quieter area if you want to. It is up toyou whether you want to take advantage of it.Can’t I just take the financial package withoutmoving?No. The scheme is for home owners who want to move toa quieter area.What about people who rent?Short-term tenants are not included in the scheme,because it is designed to help home-owners realise thelarge asset that is their home, and whose moving costs aresignificantly higher than those of people who rent.However, longer-term leaseholders will be eligible.What if the house is jointly owned?You can only apply once, and for one Home RelocationAssistance package per property. Joint home owners willneed to make their own arrangements for apportioningthis assistance between them, in agreement with theirsolicitor. They will both be treated as having applied underthe scheme.What if I am not buying another house?That doesn’t make a difference. The package is notdependent on your buying another house. However, if youmove back into the area covered by this scheme, or intothe area covered by BAA Stansted’s schemes to preventproperty blight, you will not be eligible for those schemes.What if I move after 2010?The scheme will be reviewed after 5 years and details ofwhat happens then will be available at that time.I’m an eligible tenant – what will I get?Long-term leaseholders with at least three years left on thelease who are eligible for the scheme will receive apercentage of sale price of the lease.Will mortgage lenders, or other people selling aproperty they do not live in (for example, in thecase of a defaulted loan, or an inherited home) beeligible?No. The scheme is only for eligible people who are movingvoluntarily away from the area affected by noise, asoutlined in this booklet.BAA Stansted Home Relocation Assistance Scheme 2006

12BAA Stansted Home Relocation Assistance Scheme 2006

13FORM SAR1Registering Interest in Home Relocation AssistancePlease read the eligibility criteria for the scheme set out on page 6 before completing this form.If you believe that you may be eligible for Home Relocation Assistance, please complete this form in BLOCK CAPITALS andreturn this tear-off slip to the Scheme Administrator.This form registers your interest in the scheme. It does not commit you to take part.1. Your details:Name(s):Address:Postcode:Telephone: Home: Work: Mobile:Email:2. Your current property(a) I/we confirm that I/we are the owner-occupier of the above property (property tobe sold):YES/NO(delete as appropriate)orI/we confirm that I/we are the owner of the above property (property to be sold), thatI/we are renting it to tenants and that this is my/our only UK property:YES/NO(delete as appropriate)orI/we confirm that I/we own a long-term lease in the above property (property to besold)years outstanding(insert number of years)or(b) I confirm that I have owned or leased this property for years: months:orEstimated sale price of freehold or leasehold £BAA Stansted Home Relocation Assistance Scheme 2006

14 Form SAR13. Your new propertyAddress:Postcode:4. Your solicitor/conveyancerSolicitor/conveyancer acting on my/our behalf:Name(s):Address:Postcode:Telephone: Work: Mobile:Email:I/We agree that the Scheme Administrator may contact the above solicitor/conveyancer.Please advise if I/we are eligible for Home Relocation Assistance.Print Name 1 Signature 1Print Name 1 Signature 1This leaflet does not constitute a contractually binding offer and Stansted Airport Limited (the registered name for BAAStansted Airport Limited) reserves the right to alter the details herein at its discretion.BAA Stansted Home Relocation Assistance Scheme 2006

Form SAR215FORM SAR2Application for Home Relocation AssistanceClient’s details:Client Name(s):Property Address:(property to be sold)We, the solicitors acting for..................................................................................................................................in the sale of................................................................................................................................................................................................(property address)Confirm:1 Our client(s) is/are the home-owner/occupier of the property YES/NOOR1Our client(s) is/are the home-owner/occupier of the property YES/NOis/are renting it to tenants and that this our client’s/s’ only UK property2 Contracts exchanged on (date)3 Sale price (without fixtures and fittings) £4 Completion (date)5 Our clients retain no beneficial interest in the property YES/NO6 Our clients have no right of occupation to the property YES/NO7 Clients are moving to addressBAA Stansted Home Relocation Assistance Scheme 2006

16 Form SAR2Solicitor’s Bank Details:Bank:Sort Code:Account Details:Sign.........................................................................................................................................................................................Date.........................................................................................................................................................................................Print Name 1 Signature 1BAA Stansted Home Relocation Assistance Scheme 2006

BAA Stansted Home Relocation Assistance Scheme 200617

If you would like this document inan alternative format, such as largeprint, Braille or audio cassette,please call us on 0800 783 1764.Alternatively, a fully accessible version of thisdocument can be found on our website.www.stanstedairport.com/noiseandblightProperty DepartmentBAA Stansted3rd FloorEnterprise HouseStansted AirportCM24 1QWTelephone 01279 663741