Compulsory Purchase and Compensation L2 Flashcards
Has there been any new guidance on CPO?
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
What are the 3 main acts relating to CPO?
Ones you have menttioned on your submission
Land Compensation Act 1961
Compulsory Purchase Act 1965
Land Compensation Act 1973
What is Complusory Purchase?
Compulosry Purchase Act 1965
- Enabled public authority to aquire land/property without the consent of the owner for the greater public good
- Ensures owners owners recieve fair compensation - The principle of equivelance from Horn v Sunderland
Time limit of 3 years
What is a notice to treat?
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
What is a general vesting decleration?
Compulsory Purchase Act 1981
A vesting decleration allows aquiring authorities to automatically aquire a title on a certain date
Once sumitted aquiring authority cannot withdraw
What is a notice of entry?
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
What are the 6 rules of compensation?
- No allowance for the fact the purchase is complusory
- Open market value
- No value for special suitablity
- No value for illegal use
- Equivalence Reinstatement
- Rule 2 does effect disturbance claims
What are the heads of claim?
- Land Taken
- Serverence & injurious Affection
- Disturbance
- Surveyors Fees
Explain what the heads of claim are?
- Land Taken - Assessed on open market value
- Serverence & injurious Affection - Diminution of claimants retained land
- Disturbance - Losses that are a reasonable and natural consequence of being displaced from land
- Surveyors Fees - Fees that are reasobly incurred in preparing a claim
What are loss payments?
Planning and Compulsory Purchase Act 2004
Loss payments are statuory right payments
1. Home loss
1. Basic loss
1. Occupiers loss
How much are loss payments?
Planning and Compulsory Purchase Act 2004
- Home loss - Min £8,100 Max £81,000 - owner occupiers
- Basic Loss - lower of 7.5% value of interest or £75,000 - qualitifying intrest in land
- Occupiers Loss 2.5% or £25,000
What is betterment?
Enhancement in value by the public works to be deduted from compensation
What is the ‘McCarthy’ Rules?
For a claim to suceed it must past 4 tests from the House of Lords v McCarthy Case
What is severance and injurious afftection?
- Serverance: Seperation of land into 2 or more parcles
- Injurious Affection: the actual or anticipated diminution in value of the retained land
What is disturbance?
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
What is the principle of equivelance?
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
What is blight?
Town and Country Planning Act 1990
When an owner is unable to sell or has to accept a substantially lower value
What is material detriment?
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
What is a part 1 claim?
Land Compensation Act 1973
When no land is taken but there has been diminution in property value as result of 7 possible physical factors
What are the Critchel Down Rules?
Surplus land is offered back to former land owners at market value
What are the 7 physical factors of a part 1 claim?
- smell
- smoke
- fumes
- noise
- vibration
- light
- discharge of solids or liquids
Who qualifies for Part 1 Claims?
- Freehold intrest before scheme opened
- AST no less than 3 years
- Commerial occupiers if RV is less than £36K or £44K London
What is the valuation date for part 1 claims?
What is the limitation period?
1 year and 1 day after the scheme opens
limitation period of 6 years from the first claim date
What valuation approach do you use for Part 1 claims?
We consider the switched on and switch off approach
Where is CPO in the red book?
What guidance is provided?
UK VPGA 16
PS1 & PS2 are mandatory
VPS1-5 are advisory best practice
