Statutory Regimes for Rights to and over Land

Question 1

What would be the typical CPO Heads of Claim for a Landowner?

Answer 1

• Instruction
• Inspection
• Statutory basis for compensation
• Land take
• Land acquired
• Licence?
• Injurious affection
• Severance
• Disturbance
• BPS? Cropping?
• Accommodation works
• Fees
• Valuers fee, conveyancing
• Interest and advance payment

APPENDICIES
- Cultivations?
- Valuations of residential property

Question 2

What would be the typical Heads of Claim for a Tenant?

Answer 2

1) Value of unexpired interest of the tenancy
2) Severance and injurious affection
3) Any just allowance by an incoming tenancy
5) Rent reorganisation payment (If an AHA tenant)
6) Disturbance
7) Loss payments
8) Professional fees

Question 3

What is severance?

Answer 3

Severance occurs where the land acquired contributes to the value of the land which is retained so that when severed from it, the retained land loses value.

Question 4

What is Injurious Affection?

Answer 4

The depreciation in value of the retained land as a result of the proposed construction on land acquired both for construction of works and their subsequent use.

Question 5

What is Betterment?

Answer 5

The increase in value of retained land that is adjacent to the land acquired. The increase in value would be offset against the total compensation.

Question 6

What powers are available to acquire land?

Answer 6

1) By Agreement
2) Notice to Treat followed by Notice of Entry
3) General Vesting Declaration

Question 7

What is the procedure for acquiring land via the Notice to Treat and Notice of Entry route?

Answer 7

1) A Notice to Treat must be served within 3 years of the confirmation of the CPO and state that the acquiring authority is willing to negotiate for possession of the land.
2) The Notice of Entry must then be served to take possession of the land within 3 years of the Notice to Treat being served. A minimum of 14 days notice must given for entry,
3) Possession can take place but the Title will not be conveyed to the acquirer until the compensation has been paid.

Question 8

What powers to the Highways Act 1980 give?

Answer 8

Authorises the use of compulsory purchase powers to take land needed for the construction and improvement of highways.

Question 9

What is the Telecoms legistlation?

Answer 9

2017 Electronic Communications Code - came into effect on 28th December 2017.
Part of Digital Economy Act 2017

Question 10

What does the electronic communication code allow “code operators” to do?

Answer 10

The code allows operators to:

• install electronic communications apparatus on, under or over the land;
• keep installed apparatus which is on, under or over land;
• inspect, maintain, and operate apparatus;
• carry out any works on the land to enable apparatus to be installed and maintained;

Question 11

Heads of Terms for a site compound?

Question 12

What rights to Water Companies have?

Answer 12

Water Industry Act 2003
Section 159 notice (Enter to lay pipes)
3 months notice

Question 13

What rights do Gas Companies have?

Answer 13

Gas Act 1986 as amended by the Gas Act 1995

The Statutory powers granted in the Gas Act are less specific than in electricity, telecommunications, water etc..

Part 1 of Schedule 3 of the Gas Act 1986 allows public gas transporters to purchase land compulsorily and this includes rights over land.

If new pipes are needed to be paid, then the transporter can either purchase the land compulsorily or enter negotiation, there is no equivalent of the three month Notice of Entry used by Water companies.

Question 14

What rights to electricity companies have?

Answer 14

Electricity Act of 1989.

Question 15

What should you consider when allowing a site compound? Notes.

Answer 15

• Size
• Access
• Marking out
• Management of the area:
• Should be, strip topsiol, bund, lay with membrane, crushed stone or hardcore on top, removed at the end
• Often contractors leave the stone, could be moved elsewhere if needed by agreement
• Services – water, electric, portaloo?
• Security for the site - machinery and diesel on site
• Limits to storage of dangerous materials/ fuel fire etc.
• Licence fee – usually £1/sqft
• Licence agreement needed, including fees paid
• Terms should be fixed term, with overrun premium payment due per day over
• Provisions for termination
• First payment due upon signature of the agreement
• Clearance and dismantlement of the site – what is being left? Is anything useful for the landowner?

Question 16

What is a Development Consent Order (DCO)

Answer 16

A Development Consent Order (DCO) is the means of obtaining permission for developments categorised as Nationally Significant Infrastructure Projects (NSIP). This includes energy, transport, water and waste projects.

Question 17

What powers do Highways England have over land?

Answer 17

Highways Act 1980

Question 18

What is Blight?

Answer 18

Blight is a reduction in the value of your home because of the threat of a CPO. This is because many prospective buyers are likely to be put off buying a property if they believe it may be under threat of demolition or will be in an area subject to major changes in the near future.

Buyers may also not be able to get a mortgage on a property under threat of a CPO. Put simply, your property now has a restricted pool of potential buyers, which can reduce the value of the property.

Question 19

What is a blight notice?

Answer 19

A blight notice forces the acquiring authority to buy your home on Compulsory Purchase Order terms.
Only if:
* freeholders and leaseholders with at least three years remaining on their lease can qualify. If you are a landlord or the property stands empty you cannot apply.
* You must prove that you have tried to sell the property through a reputable estate agent and have been unable to, unless you substantially reduced its price. Typically, you have to have tried for around 6 months.

Question 20

Why would you opt to tax (VAT?)

Answer 20

You can then claim back the VAT on anything purchased, goods / services/ property - any inputs.

owner must then charge VAT as appropriate on the property if sold, leased

VAT cannot apply to residential properties so cannot be charged on residential rents.

Question 21

VAT and construction? What are the implications.

Answer 21

Construction of new dwellings is zero rated.
Conversions of buildings for use as dwellings is also subject to reduced rate of tax at 5%