4. Compensation Calculations Flashcards
What is Home Loss Payment?
If you are a freehold owner or a lessee with at least 3 years unexpired you are entitled to 10% of the market value of the dwelling. Subject to a maximum payment of £64,000 and a minimum of £6,400.
What is Basic Loss?
Basic Loss an additional payment made to reflect the inconvenience and disruption caused by the acquisition. The payment made is 7.5% of the value of the interest subject to a maximum payment of £75,000. To qualify you must have held an interest in the land for a year or more prior to possession.
What is Occupiers’ Loss?
Occupiers Loss is an additional payment made to reflect the inconvenience and disruption caused by the acquisition. The payment made is 2.5% of the value of the interest subject to a maximum payment of £25,000. To qualify you must have occupied the land for a year or more.
Where are the maximum limits identified?
Secondary legislation, also known as statutory Instrument.
Law made under the authority of an Act of Parliament to provide detailed rules and regulations without requiring a new Act.
Are compensation reports red book compliant?
Yes. All valuations are red book compliant. Specifically VPGA 16 (for CPO purposes).
The red book is a reporting standard. How do you comply with this for compensation matters?
You can undertake a red book compliant assessment of compensation. Noting that the basis of value is s5r2 LCA 1961 and not MV in the red book.
Also there are special assumptions stated through the instructions and reports.
