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Council Compulsory Purchased My House But Refused To Sell One Of Their Properties Straight To Me

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When I first received a compulsory purchased order I agreed to sell my house to the council I was interested in one of their properties. They bought it at at auction back in 2003 for £50.000 . It had to be completly rennovated but it was a really large property and I really liked it. I've been consulting with the council for over a year and the house has been completely renovated and is almost ready. The thing is that the whole process took more than a year to complete due mostly to legal issues . In fact the council had refused to sell the house straight to me but it said that he had to sell it to a housing association first and that we had to buy it off them at market value. At the beginning they said that in this way we would have speed up the process . This was untrue as the works needed in the house only took three months to be completed and two moving date had to be postponed. I have found on the Internet a grant section 22 agreement between the housing association and the council and I'm now wondering if this has something to do with it ( the housing association get a grant to renovate empty properties ) My husband is disabled and we have 3 young children. We have lived in a desolated empty street for months and my patience is wearing out.. I was wondering if anybody could tell me if by refusing to sell the house straight to me they were within their rights. After finishing the renovation works a couple of weeks ago they have sold it to Northern Counties for £ 120. My valuer has valued it at 95 are other houses in the street are being put on the market for that price but apparently because it was the city valuer that valued the house I cannot negotiate the price. .. Is this legal?????

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