Compulsory Purchase 2 Flashcards
Describe disturbance compensation
Section 5, Rule 6 of LCA 1961 - costs which are natural direct and reasonable consequences of the dispossession and not too remote.
Second limb disturbance - matters not related to the value of land
Describe compensation test for assessing disturbance
- Causation (loss needs to be caused by acquistion)
- Remoteness (was the loss too remote ie indirect or knock on effect of the acquisition
- Reasonableness - loss incurred reasonable - 3 quotes for disturbance compensation
Name typical business disturbance costs for extinguishment
The value of business goodwill
Loss on forced sale of stock, vehicles and machinery
Redundancy costs
Administrative costs for winding down business
When can a claimant decide to extinguish their own business
- claimant over 60 or over on possession date
- the rateable value less than £36,000
Name three types of statutory loss payments
HLP - s.29 of Land Compensation Act 1973
BLP - s.33a LCA 1973
OLP - s.33b LCA 1973
Describe HLP principles
- Residential occupiers, main residence and must be displaced from dwelling after CPO is confirmed and must have occupied for a year prior to displacement
One payment per household
Minimum payment - £7,100
10% of s.5(2) MV upto £71,000
Describe BLP principles
(s33a LCA 1973)
Includes non resident owners and owners and tenants of non residential property
Interest needed to exist 12 months prior before valuation date
7.5% of s.5(2) market value up to a maximum of £75,000
No minimum payment
Describe OLP principles
(s33b LCA 1973)
Occupiers of non residential property
Maximum £25,000, Minimum £2,500 (£300 if only part of land is taken)
Either:
- 2.5% of the rule 2 value (market value)
- Building amount £25 per sqm (GEA)
- Land amount £2.50 per sqm of the area of land (non agricultural)
- Land amount - £100 per ha for first 100 ha then £50 per ha for next 300 ha
Can have both HLP and BLP/OLP if partly dwelling and partly occupied for other purposes
Describe Advanced Payments
- S52 Land Compensation Act 1973
- Amount payable – 90% of the AA opinion of the compensation payable
- Advanced payment paid on the later of
(a) Trigger event (may make payment on CPO confirmed date but must make payment from the date they serve a NOE/ execute a GVD
(b) 3 months after the request is received
Name the different ways that possession of land occurs when the CPO is confirmed
- By agreement via negoitation
- Notice to Treat and Notice of Entry
- General Vesting Declarations
- Response to Blight Notices
Describe Notice to Treat
NTT served under s5 of Compulsory Purchase Act 1965
- Notice to treat creates an obligation to sell to the LPA, and must be served within 3 years of the operative date of the CPO
- does not transfer ownership / give right to possession
- AA willing to buy land and pay compensation for damages
- NTT lasts for three years and in that time, AA must agree compensation and take possession
Describe Notice of Entry
- Must be served prior to taking entry onto land (CPA 1965)
- Served after or alongside a NTT
- Minimum of three months notice before entry can be taken by AA
- Counter notices can be served by claimant on the AA and make the AA take possession no later than day in the counter notice
- Date of entry - valuation date
Name act that relates to gaining entry to land subject to CPO for surveying, valuing
s.172 Housing and Planning Act 2016
Describe General Vesting Declarations
Served under Compulsory Purchse Vesting Declarations Acr 1981
- replaces NTT and conveyancing with one procedure
- transfers title to AA automatically, vesting land in AA as if NTT and NTE has been served
- creates new interest in title before compensation is settled
Declaration notice is 3 years
GDV vs NTT
GVD used when there is certainity of land to be acquired, NTT gives flexibility for exact land amount and possession dates
AA use GVD for regeneration and NTT/NoE for public works
GVD cannot be reversed, but can withdraw notice to treat