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 are the 3 main acts relating to CPO?

Ones you have menttioned on your submission

Answer 2

Land Compensation Act 1961
Compulsory Purchase Act 1965
Land Compensation Act 1973

Question 3

What is Complusory Purchase?

Compulosry Purchase Act 1965

Answer 3

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 4

What is a notice to treat?

Answer 4

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 5

What is a general vesting decleration?

Compulsory Purchase Act 1981

Answer 5

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

Once sumitted aquiring authority cannot withdraw

Question 6

What is a notice of entry?

Answer 6

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 7

What are the 6 rules of compensation?

Answer 7

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 8

What are the heads of claim?

Answer 8

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

Question 9

Explain what the heads of claim are?

Answer 9

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 10

What are loss payments?

Planning and Compulsory Purchase Act 2004

Answer 10

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

Question 11

How much are loss payments?

Planning and Compulsory Purchase Act 2004

Answer 11

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 12

What is betterment?

Answer 12

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

Question 13

What is the ‘McCarthy’ Rules?

Answer 13

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

Question 14

What is severance and injurious afftection?

Answer 14

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

Question 15

What is disturbance?

Answer 15

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 16

What is the principle of equivelance?

Answer 16

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 17

What is blight?

Town and Country Planning Act 1990

Answer 17

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

Question 18

What is material detriment?

Answer 18

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 19

What is a part 1 claim?

Land Compensation Act 1973

Answer 19

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

Question 20

What are the Critchel Down Rules?

Answer 20

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

Question 21

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

Answer 21

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

Question 22

Who qualifies for Part 1 Claims?

Answer 22

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

Question 23

What is the valuation date for part 1 claims?

What is the limitation period?

Answer 23

1 year and 1 day after the scheme opens

limitation period of 6 years from the first claim date

Question 24

What valuation approach do you use for Part 1 claims?

Answer 24

We consider the switched on and switch off approach

Question 25

Where is CPO in the red book?

What guidance is provided?

Answer 25

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