Communication & Negotiation

Question 1

How is the value of a ransom strip calculated

Answer 1

Residual appraisal to calculate the land value unlocked by the ransom strip based on the proposed development then less EUV
Typically 30%-50% of the uplift in value

Question 2

What are the features of good negotiation?

Answer 2

Agreeing client’s objectives and strategy beforehand, including what points you can give on and which are non negotiable
Detailed research and preparation including listing potential pushbacks
Understand the other parities’ position
Develop a collaborative rather than adversarial approach - build a rapport
Always maintain communication but walk away when you need to

Question 3

Which case law is relevant to ransom strips?

Answer 3

Stokes v Cambridge Corporation 1961 is an important case where the judge established that one third in the uplift of the value of the land requiring access via the ransom strip was an appropriate purchase price. This considered other factors like potential alternative access. In Batchelor v Kent County 1988 and Ozanne and ors v Hertfordshire Council 1989 the price was determined to be 50% of the uplift in value

Question 4

What is a ransom strip?

Answer 4

A piece of land needed to access another piece of land, issue arising where there is development potential which requires the ransom strip to be unlocked

Question 5

What is a covenant

Answer 5

A promise contained in a deed

Question 6

What is an easement

Answer 6

A right exercised over one property which benefits another e.g. right to light, right of way
It is a non possessory interest in land

Question 7

What is a wayleave

Answer 7

Contractual agreement between a landowner or landlord and a utilities company where the company is provided a licence with right to access the property to install/maintain equipment

Question 8

Deed vs contract

Answer 8

Deeds have to be written, don’t require consideration and limitation period for actions brought under the deed is 12 years rather than 6

Question 9

Lease vs licence

Answer 9

Licence gives permission to occupy and does not confer an interest in land. It is personal so cannot be bought or sold and it has no security of tenure
A lease is for a fixed period of time and gives exclusive possession of the property to the tenant