Compulsory Purchase and Compensation L2

Question 1

Has there been any new guidance on CPO?

Answer 1

Surveyors Advising in Respect of Compulsory Purchase and Statutory Compensation (2nd Edition) 2024

You must seek to provide your client with advise to result in fair and eqitable outcome

Question 2

What is Complusory Purchase?

Compulosry Purchase Act 1965

Answer 2

1. Enabled public authority to aquire land/property without the consent of the owner for the greater public good
2. Ensures owners owners recieve fair compensation - The principle of equivelance from Horn v Sunderland

Time limit of 3 years

Question 3

What is a notice to treat?

Answer 3

Served after a scheme has been confirmed, notice to treat is a formal invitation to negoitate the value of your property found in S.5 of the Complusory Purchase Act 1965

Aquiring authority can cancel if they no longer require your land

Question 4

What is a general vesting decleration?

Compulsory Purchase Act 1981

Answer 4

A vesting decleration allows aquiring authorities to automatically aquire a title on a certain date

Once sumitted aquiring authority cannot withdraw

Question 5

What is a notice of entry?

Answer 5

Allows aquiring authority to take entry onto claimants land on a particular day

Claimant is entitled to a payment of 90% of the aquiring authorities estimate

Question 6

What are the 6 rules of compensation?

Answer 6

1. No allowance for the fact the purchase is complusory
2. Open market value
3. No value for special suitablity
4. No value for illegal use
5. Equivalence Reinstatement
6. Rule 2 does effect disturbance claims

Question 7

What are the heads of claim?

Answer 7

1. Land Taken
2. Serverence & injurious Affection
3. Disturbance
4. Surveyors Fees

Question 8

Explain what the heads of claim are?

Answer 8

1. Land Taken - Assessed on open market value
2. Serverence & injurious Affection - Diminution of claimants retained land
3. Disturbance - Losses that are a reasonable and natural consequence of being displaced from land
4. Surveyors Fees - Fees that are reasobly incurred in preparing a claim

Question 9

What are loss payments?

Planning and Compulsory Purchase Act 2004

Answer 9

Loss payments are statuory right payments
1. Home loss
1. Basic loss
1. Occupiers loss

Question 10

How much are loss payments?

Planning and Compulsory Purchase Act 2004

Answer 10

1. Home loss - Min £8,100 Max £81,000 - owner occupiers
2. Basic Loss - lower of 7.5% value of interest or £75,000 - qualitifying intrest in land
3. Occupiers Loss 2.5% or £25,000

Question 11

What is betterment?

Answer 11

Enhancement in value by the public works to be deduted from compensation

Question 12

What is the ‘McCarthy’ Rules?

Answer 12

For a claim to suceed it must past 4 tests from the House of Lords v McCarthy Case

Question 13

What is severance and injurious afftection?

Answer 13

• Serverance: Seperation of land into 2 or more parcles
• Injurious Affection: the actual or anticipated diminution in value of the retained land

Question 14

What is disturbance?

Answer 14

Costs and losses as a result of being disturbed from their property
* 3 rules for assessing disturbance from Shung Fund Ironworks [1995]
* Must be a causal connection
* Loss must not be too remote
* Must have tried to mitigate losses

Question 15

What is the principle of equivelance?

Answer 15

An owner has right to be put, as far as money can do it, in the same position as if their land was not taken

Right to recieve money no more or less than the loss imposed in the public interest

Question 16

What is blight?

Town and Country Planning Act 1990

Answer 16

When an owner is unable to sell or has to accept a substantially lower value

Question 17

What is material detriment?

Answer 17

If part of a property cannot be aquired without causing material detriment to the rest (28 Days to serve from vesting date)

Where aquiring authoirty propose to take part of property, material detriment gives Upper Tribunal to make them aquire whole

Question 18

What is a part 1 claim?

Land Compensation Act 1973

Answer 18

When no land is taken but there has been diminution in property value as result of 7 possible physical factors

Question 19

What are the Critchel Down Rules?

Answer 19

Surplus land is offered back to former land owners at market value

Question 20

What are the 7 physical factors of a part 1 claim?

Answer 20

1. smell
2. smoke
3. fumes
4. noise
5. vibration
6. light
7. discharge of solids or liquids

Question 21

Who qualifies for Part 1 Claims?

Answer 21

• Freehold intrest before scheme opened
• AST no less than 3 years
• Commerial occupiers if RV is less than £36K or £44K London

Question 22

What is the valuation date for part 1 claims?

What is the limitation period?

Answer 22

1 year and 1 day after the scheme opens

limitation period of 6 years from the first claim date

Question 23

What valuation approach do you use for Part 1 claims?

Answer 23

We consider the switched on and switch off approach

Question 24

Where is CPO in the red book?

What guidance is provided?

Answer 24

UK VPGA 16
PS1 & PS2 are mandatory
VPS1-5 are advisory best practice