CPO L1, L2,L3 Flashcards

1
Q

LB Wandsworth - WYR (L2)

Describe the Pre-Inquiry Stages within a CPO

A

Pre inquiry stages include

  • undertaking negotiations with landowners in parallel to preparing and making of the CPO to build a good working relationship with those affected and treat concerns with respect
  • Land referencing of all interests and letters sent to landowners to confirm interests
  • if AA is a council, must make a resolution to make a CPO
  • Preparation of documents - Compulsory Purchase Order, SoR, CPO Schedule of all interest and map to accompany Order
  • Notices on site for 2 weeks / in newspaper prior to the CPO being submitted
  • Serve notices on all interests indicating that CPO is about to be made
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2
Q

LB Wandsworth - WYR (L2)

Describe the purpose of the CPO strategy meetings at WYR

A

The monthly strategy meetings are to discuss the pre-inquiry stages of the CPO. This has included discussing voluntary acquisitions to date, drafting of CPO documents, red line boundary, ongoing negotiations with landowners, update on potential objectors within the scheme, discussing of funding, planning application updates etc

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3
Q

LB Wandsworth - WYR (L2)

What is purpose of the SoR

A

The SoR is submitted alongside the CPO documents (Order, Order Schedule and Map) to indicate the AAs reasoning behind the CPO powers. It is not a mandatory requirement, however, MHCLG guidance on Compulsory Purchase advises that it should be issued with statutory notices when making the CPO to advise landowners on the reasoning of the CPO

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4
Q

LB Wandsworth - WYR (L2)

How did you take part in pre-powers engagement at WYR

A

I sent out a series of mailshots informing the leaseholders of the scheme and the councils rehousing offer to residents and non resident leaseholders within the scheme. I also followed this up with calls to all leaseholders to explain the scheme and the reasoning behind the CPO

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5
Q

LB Wandsworth - WYR (L2)

How did you help draft the WYR SoR

A

I wrote the section on negotiations with those owning property in the Order Land
• Council has actively been pursuing interests on long leases/freehold interests in the Order Land – to secure timely demolition of blocks, undertaking negs in parallel to seeking powers
• I outlined to background on the negotiation with leaseholders, the voluntary purchase scheme offered to leaseholders, in the no scheme world – in shadow of CPO as advised in MHCLG guidance (MV, Statutory loss payments, Professional fees, disturbance)
• Carter Jonas’s strategies on engagement – letter offering valuation and negotiations to leaseholders
• Provided the upto date negotiations / acquisitions within the scheme – how many acquired by council to date?

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6
Q

LB Wandsworth - WYR (L2)

What chapters or information was included in the SoR

A
  • The SoR included information on the enabling Act (S226 of TCPA 1990) which was going to be used for the CPO
  • Details on Order Land
  • Justification of the specific enabling act – objectives to deliver housing, commercial, health centre, park, landscaping (social, economic, environmental benefits)
  • Need for redevelopment – high crime, safety of buildings
  • Justification of CPO powers – social, economic, environmental etc
  • Negotiations with landowners to date
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7
Q

LB Wandsworth - WYR (L2) - 67 Harbridge

How did you determine the MV of the property?

A
  • Undertook measurement (IPMS 3B) and inspection of property. Good condition, no amenity space
  • Comparable Evidence - 3 bedroom maisonette on the Alton Estate in Roehampton. Looked for other 3 bedroom properties on the Alton Estate which were not within the red line boundary of the CPO to determine the MV - £340,000 (negs range at £330,000-£340,000)
  • Property sold nearby in Isbley Gardens, identical properties, within 500m also on estate £340,000
  • also entitled to compensation (disturbance) under Heads of Claim (LCA 1965)
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8
Q

LB Wandsworth - WYR (L2) - 67 Harbridge

How did you determine the disturbance claim available to the leasehold at 67 Harbridge

A

The claimants surveyor provided a compensation claim for the property

  • included basic loss payment (non resident)
  • reasonable professional fees (£750 for valuation and 1% of the mv for the negs fee)
  • SDLT - only payable upto the cost of SDLT of a comparable property, for example similar size/similar area, similar cost.
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9
Q

LB Wandsworth - WYR (L2) - 67 Harbridge

Who qualifies for a basic loss payment

A

s33 of LCA 1973
Non resident landowners of residential property or owners of non residential property
7.5% of the MV of the interest, upto maximum of £75,000
No minimum payment

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10
Q

LB Wandsworth - WYR (L2) - 67 Harbridge

How did you negotiate the claim

A

Agent was instructed (Sawyer Fielding). I agreed with the council an undertaking for their reasonable professional fees and asked for their ToE with their client for our records. Submitted offer to agent at £330,000 as it was recommended to go in at a slightly lower value, in hope of negotiating and agreeing at the MV. Their offer at £355,000. I asked them to share their comparable evidence. There was no evidence to support figure of similar 3 bed flats (low rise, good condition), importantly ex local authority. I discussed the comparables I used in my report, indicating the value at £340,000. Leaseholder accepted offer at £340,000.

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11
Q

LB Wandsworth - WYR (L2) - 67 Harbridge

Name the Act that relates to compensation costs for non resident landowners

A

• S10a of LCA 1961 provides compensation to an owner of an interest not in occupation. Payable within 1 year of the date of entry

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12
Q

LB Wandsworth - WYR (L2)

Describe Equivalence

A

fair compensation – the purpose of compensation is to allow the claimant to be put back in the position as if they had not incurred compulsorily acquisition of their interests, however, they should not be put in a better position

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13
Q

LB Wandsworth - WYR (L2)

Name 3 tests for compensation

A

• no allowance is to be made due to the fact that the acquisition was compulsorily…land is to be valued at price might be expected to realise if sold by a willing seller… but should be compensated fairly and fully for loss – CAUSATION, REMOTENESS and DUTY TO MITIGATE.

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14
Q

HS2 - Lower Bridge Farm, Hopton

What Act was used for the blight notice

A

High Speed Rail (London – West Midlands) Act 2017 – created via a hybrid bill, sets out proposals for introducing new laws; grant planning, operate, maintain, cpo interest etc

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15
Q

HS2 - Lower Bridge Farm, Hopton

What is safeguarded land

A

protects land which we may need to build and operate the railway from conflicting developments that might otherwise take place, triggers statutory blight – property owners serve statutory blight notice asking SoS to buy their property before CP.

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16
Q

HS2 - Lower Bridge Farm, Hopton

What does a blight claim include

A

Heads of Claim (Value of land taken, Injurious Affection and Severance, Disturbance, Fees)

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17
Q

HS2 - Lower Bridge Farm, Hopton

What Act are blight notices served under and purpose of the blight notice

A

TCPA 1990 - purpose of a blight notice is to compel authorities to purchase in advance of their compulsory purchase needs to mitigate hardship

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18
Q

HS2 - Lower Bridge Farm

What are the main requirements to serve a blight notice

A
  • Within safeguarded area
  • Required to have a qualifying interest in the property (freeholder/leaseholder)
  • Made reasonable efforts to sell the property – confirmation from estate agent that they wont not market the property due to the scheme
  • Proof of address / occupancy
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19
Q

HS2 - Lower Bridge Farm

What are the main requirements to serve a blight notice

A
  • Within safeguarded area
  • Required to have a qualifying interest in the property (freeholder/leaseholder) of resi/agri or commercial if less than £36,000
  • Made reasonable efforts to sell the property – confirmation from estate agent that they wont not market the property due to the scheme
  • Proof of address / occupancy
20
Q

HS2 - Lower Bridge Farm

A

Definition of blighted land

  1. Land identified in local plan for National/Local Government functions or statutory undertakers
  2. Safeguarded Land
  3. Housing Act clearance and renewal areas
  4. Land Identified for a road or in a Highways Act Order
  5. Land in a CPO/TWA/DCO seeking or authorising CP of the land
  6. Land in a site specific National Policy Statement (Planning Act 2008)
21
Q

HS2 - Lower Bridge Farm

Define the 6 definitions of blight

A

Definition of blighted land

  1. Land identified in local plan for National/Local Government functions or statutory undertakers
  2. Safeguarded Land
  3. Housing Act clearance and renewal areas
  4. Land Identified for a road or in a Highways Act Order
  5. Land in a CPO/TWA/DCO seeking or authorising CP of the land
  6. Land in a site specific National Policy Statement (Planning Act 2008)
22
Q

HS2 - Lower Bridge Farm

Name main components of the blight notice

A

submitted to AA, with proof of interest (Titles and address, evidence of reasonable endeavours to sell property (6 months marketing) or most schemes will take a view on a professional letter deeming blighted.

23
Q

HS2 - Lower Bridge Farm

When was the blight notice excepted

A

June 2016 (Hopton, Staffordshire). Valid for 3 years t submit the claim

24
Q

HS2 - Lower Bridge Farm

Describe the Property at Lower Bridge Farm

A
  • Four bedroom dwelling, stables and outbuildings, equestrian menage, and grass paddocks – permanent pasture (27 acres) and remainder acre forming yard, gardens, menage, a property
  • Property – detached, cement rendered brick, clay tile roof, with garage, front and back garden, driveway – measured using IPMS 2 Residential.
  • Agricultural buildings – pole barn (near disrepair), brick barn with fibre cement roof on concrete base (used as stables), steel portal frame barn, brick barn (benefits from planning consent to consent to a residential dwelling), and a sand menage – measured GIA in line with RICS Property Measurement 2015
25
Q

HS2 - Lower Bridge Farm

Describe statutory due diligence checks for the property

A

I checked the property’s title documents to check for no restrictive covenants, flooding maps, EPC, planning enquiries

THere was a search = planning enquiries (change of use to dwelling from a barn in 2013, expired 2016). Planning consent valid when blight notice was accepted so valuation takes into account planning decision

26
Q

HS2 - Lower Bridge Farm

How did you value to property at Lower Bridge Farm

A
  1. Undertook comparable searches to look for entire small holdings of similar size and features (menage, buildings etc) and comparable evidence searches for the individual parts of the property i.e. house, land, barns with planning permission etc – 20 mile radius of property, had to ensure comparable property was not also from the blighted safeguarded zone.
  2. Adjusted to reflect acreage, size, condition of house etc
    o Valued house at £425,000 (best comparable was Shredicote House, achieved £402,500 in June 2019, subject slightly larger and slightly better condition

Valued the property at £970,000

27
Q

HS2 - Lower Bridge Farm

Describe the heads of claim submitted to the claimants agent at Lower Bridge Farm?

A

MARKET VALUE - £970,000
Home Loss Payment on the dwelling (£425,000) -

£42,500 (10% of MV – resident occupier)
Basic Loss Payment on barns and land (£545,000) -

£40,875 (7.5% of MV – non residential) – qualifying interest, whereby not entitled to a HLP
Occupier Loss on barns and land (£545,000) - £13,467 (2.5% of the MV – occupier of land and buildings)

28
Q

Birmingham City Council - 10 Crown Avenue

What did you advise the council on at 10 Crown Avenue

A

I advised Birmingham City Council on a compensation claim for the relocation of an electrical business at 10 Crown Avenue.

I advised the council on reasonable disturbance items including the duplication of rent, removal costs and re-wiring costs - I advised that disturbance items were not too remote, consequences of the acquisition and properly evidenced.

Advised the Client that the tenant was entitled to a OLP (£2500), worked out on a basis of £25 per sqm. GEA area was below the minimum amount, so awarded £2500.
Advised professional fees were reasonable - £120/hr x 30 hrs (reasonable rates to align with Advising in respect of compulsory purchase and statutory compensation, 2018)

29
Q

Birmingham City Council - 10 Crown Avenue

What Act was the property acquired under

A

Birmingham City Council (Perry Bar Commonwealth Games Athletes Village and Legacy) Compulsory Purchase Order 2018

Enabling Act – s226 of TCPA 1990

30
Q

Birmingham City Council - 10 Crown Avenue

What was the purpose of the development

A

new residential mixed use development to serve as athletes village and subsequently housing, commercial premises, highway and new bus depot

31
Q

Birmingham City Council - 10 Crown Avenue

Why did you advise that the duplication of rent was suitable disturbance item

A

There was a period of time with overlap between the start of the new lease/old lease.

Recommended to refund the rent and service charge for the 9 month period. This allowed the tenant to mitigate their position by running both locations at the same time, preventing a potential loss of profits claim (double overheads)

32
Q

Birmingham City Council - 10 Crown Avenue

Why did you advise that the removals costs was suitable disturbance item

A

The removal costs were a direct consequence of the acquisition and relocation
The claimant provided evidence of receipts and several quotes to show reasonable cost of claim, advised that this should be payable

33
Q

Birmingham City Council - 10 Crown Avenue

Why did you advise that the re-wiring costs at the new unit was a suitable disturbance item

A

The claim item included the disconnecting equipment, relocating equipment and re-wiring at the new location. It was a direct consequence of the acquisition, was necessity as part of the business to undertake this work at the new unit. I consulted with an internal building surveyor to ensure the quote was reasonable as out of my expertise and then recommended it was a reasonable cost due to the relocation.

34
Q

Birmingham City Council - 10 Crown Avenue

Were there any items that you did not recommend to the council

A

Claimant submitted a claim for BT invoices – there was no evidence provided to relate this cost to the CPO so I advised the council that this was too remote and not recommend payment.

35
Q

Part 1 Claims - KCC, Lower Road

How did you advise KCC on the Part 1 claims at Lower Road

A

I advised the Client that there was no payment for compensation to be paid to the claimants as there was no diminution in value from physical factors from the scheme

36
Q

Part 1 Claims - KCC, Lower Road

What are the physical factors which can cause a diminution to the land

A

Noise, artificial lighting, vibration.

37
Q

Part 1 Claims - KCC, Lower Road

Define the relevant date and when can claims be submitted?

A

Relevant Date – is the date the Scheme came into use (December 2018)

Claims can be submitted to the AA 1 year and 1 day after the relevant date (December 2019) (first claim day)

38
Q

Part 1 Claims - KCC, Lower Road

How did you determine that there was no claim

A

There were 12 properties which had claimed a depreciation in value by £12,000 per property.

I researched sold property to use as comparable evidence both within the claim area near to the new roundabout as well as further away from the claim area on the same road to determine the Market Values. There had been lots of open market transactions on the road, both on/before the relevant date and at the claim day. Both property values within the claim area and also along the road were very similar, indicating there was no reduction in value due to the physical factors.

Therefore, I wrote to the land agent to advise that there was no claim due to the physical factors arising from the use of the public works

39
Q

Part 1 Claims - KCC, Lower Road

Who qualifies for a part 1 claim? When is compensation payable?

A

To claim under part 1, must be an owner occupier of residential property (freehold) or tenancy with at least 3 years to run at date of claim and must have an interest before the relevant date

Compensation is payable whereby
• Where the value of an interest in land has depreciated due to physical factors caused by the use of public works following construction, their alteration or change in their use.
• Only where no land is taken
• Where injurious affection not caused by execution of works

40
Q

Part 1 Claims - KCC, Lower Road

What act relates to Part 1 Claims and what schemes can be claimed for

A

Under part 1 of the Land Compensation Act 1973, the act specifies the type of works that can be claimed due to the scheme – new highways/aeroplane runways, but not resurfacing of roads. Road is only altered when there is a change to the location, width or additional carriage beside.

41
Q

Part 1 Claims - KCC, Lower Road

Did you review any other documents to ensure no depreciation in value due to the scheme

A

I also reviewed KCC commissioned noise and artificial lighting reports. These further supported the lack of claim as they concluded no increase in noise or light.

42
Q

Part 1 Claims - KCC, Lower Road

Are there any limitations of the way the claims were undertook

A

No inspections were undertaken (as requested by KCC). I undertook a drive by of the site, however, it was assumed that all properties were in average condition

43
Q

Describe the overall CPO Process for AA

A
  1. Land referencing undertaken and try to negotiate with parties via agreement prior to the CPO
  2. Order documents are prepared (Statement of Reasons, Order, CPO Schedule, Order Map) and submitted to SoS for approval. Affected parties are notified and able to object
  3. SoS asks PI to hold an inquiry to hear objections and promote justification (submit SoC)
  4. PI reports to SoS with findings
  5. SoS considers the Inspectors report and makes a decision on whether to approve order or not
  6. If approved, notice given to affected parties and Order becomes Operative. Confirmation of notice in newspapar
  7. 6 weeks challenge period
44
Q

What is included in Order document

A

name of order, enabling act, acquiring authority, purpose of acquisition, schedule of land affected and qualifying persons

45
Q

What must an AA have to undertake a CPO

A

Must have a compelling case in the public interest, take reasonable steps to acquire land by agreement and purpose of CPO justifies interfering with landowners human rights, no financial or planning impediments