Compulsory purchase and compensation - lvl 2 Flashcards
How have you assisted in the preparation of the various stages involved in the process of compulsory purchase including the estimation of a claim for compensation?
I was instructed on 36 to 38 Station Parade, Barking which was part of the CPO scheme in Barking for the redevelopment of Vicarage Field Shopping Centre.
I was instructed on the valuation for the site and compensation payable to the owner occupier. I found the MV for the site and also advised on basic loss payment, occupier’s loss payment, and disturbance that my client was able to claim.
Outline the stages and timing involved in making, confirming and implementing of a compulsory purchase order.
Stage 1 - Consultation and engagement. The AA should endeavour to acquire property and land by private treaty through negotiation.
Stage 2 - Land referencing. The AA must identify all owners, lessees, and occupiers to be included in the order.
Stage 3 - Making the order / order application - Notice of Order must be published in local newspapers for a period of 2 weeks and served on every owner, lessee and occupier.
Stage 4 - Objections and public enquiry. Affected parties have a 21 day objection period. Shortly after the closing date for objections the AA will confirm the inquiry (relevant date). The inquiry is usually held within 22 weeks from the relevant date. Within this time period the AA submits a statement of case and statement of reasons.
Stage 5 - Minister’s decision. The minister or SoS can accept, modify of reject the CPO.
Stage 6 - Acquisition of land. This can be via Notice to Treat or GVD.
Flat 2, Nimrod Passage - tell me you understanding of the term blight.
Blight in this case relates to land which is designated for public authority functions in development plans. The land is part of the Crossrail 2 safeguarding zone.
Flat 2, Nimrod Passage - had you undertaken blight claim instructions previously.
No I had not.
Flat 2, Nimrod Passage - did you issue terms of engagement to the owner?
I issued the terms of engagement with assistance of my manager.
Flat 2, Nimrod Passage - what was the condition of the property?
Flat 2, Nimrod Passage was built in the 2,000s and comprised of cavity wall construction. The owner occupied the residential accommodation and the property was kept in an excellent condition.
Flat 2, Nimrod Passage - at any time was notice served on the local authority?
A blight notice was not served on the AA.
36-38 Station Parade, Barking - was the owner occupier directly affected by the CPO notice?
The owner occupier was directly affected by the notice of order and referenced within the plan for the redevelopment of Vicarage Fields Shopping Centre and surrounding land.
36-38 Station Parade, Barking - tell me about your view of MV and the redevelopment value.
I determined that the site’s value and also considered this with redevelopment potential. I valued for MV using the investment method and comparable method of valuation. I additionally considered loss payment, occupier’s loss payment and home loss payment which the owner occupier was liable to receive.
I had reference to The Horn Principle (Horn v Sunderland Corporation 1941) and did not take into account disturbance costs or loss payments when there was to be redevelopment for additional flats above the property.
36-38 Station Parade, Barking - you mention rules, what are those?
The Land Compensation Act 1961 Section 5
- Rule 2 - Market Value of the Land (including hope, planning potential and ransom value)
- Rule 6 - Disturbance and other losses
36-38 Station Parade, Barking - why did the inspector confirm to refuse?
The inspector determined that the scheme was not financially viable and was not justified in the public interest. Also, the inspector was concerned that inadequate negotiations had taken place prior to land referencing.
36-38 Station Parade, Barking - who was the inspector working on behalf?
The inspector was appointed on behalf of The London Borough of Barking and Dagenham Council.
