Barry Denyer-Green
INTRODUCTORY OUTLINE • Blight notices • Exercising powers to acquire compulsorily • Compensation
Blight notices • Land falls within blight categories in sched 13 to T&CP Act 1990, eg land in a highway scheme or proposed to be acquired in a CPO. • Owner-occupier where NAV does not exceed £34,800 • Residential owner occupier • Owner occupier of agricultural unit
Blight Notices (2) • Owner occupier = owner of freehold or lease with at least 3 yrs unexpired • 6mths occupation before blight notice • Or period of 6mths ending not more than 12mths before blight notice • Must show reasonable endeavours to sell, or unable to do so save at a lower price
Blight notices (3) • Counternotice within 2 mths on one or more specified grounds • Counternotice referred to Upper Tribunal (within one mth – Upper Tribunal Rules 2010, r28(7) • Deemed Notice to treat 2mths after blight notice unless counternotice served
Exercising powers of compulsory purchase • Notice to treat (NTT) and notice of entry under Compulsory Purchase Act 1965 • General Vesting Declaration (GVD) under Compulsory Purchase (Vesting Declarations) Act 1981
Exercising powers of compulsory purchase (2) Time limits: • Powers must be exercised within 3yrs of CPO becoming operative • NTT ceases to have effect after 3yrs unless compensation agreed, determined, paid, or paid into Court or GVD executed, possession taken, or reference to Tribunal
Notice to treat • Serve on all parties with an interest in land • Contractual licensees have no interest in land • Tenant with yearly or interest no more than a year usually dispossessed by notice under section 20 CPA 1965
Notice to treat (2) • Interests in land are fixed • Entry can be taken under Notice of Entry (min 14 days) • Compensation becomes referable to Tribunal • No contract until compensation agreed or determined • Can withdraw NTT in limited cases
Notice to treat (3) • NTT plus agreed or determined compensation regarded as a “statutory” contract • Title conveyed or transferred in usual way.
General vesting declaration • Can use for some land, but not where NTT already served in respect of a particular interest • Notice of intention served on all parties • Execution of declaration at least 2mths later • Specifies vesting date at least 28 days later • Notice of vesting
General vesting declaration (2) • Minor tenancies excluded (monthly) • “Long tenancies” specified and excluded • Title and right to possession passes on vesting date • Compensation becomes payable • Deemed NTT served on date of execution of GVD
Land and interest • Mines and minerals can be excluded by applying mining code: sched 2 of Acq of Land Act 1981 • Land and rights • Leases • Easements and restrictive covenants
Entry and possession • Interest payable at prescribed rates from date of possession • Advancement payment of compensation: 90% of Acq Auth’s estimate
Compensation Compensation for land taken: • Entitlement: S7 of CPA 1965 and s10 of CP(Vest Dec) Act 1981 • Principles of fair compensation: Shun Fung • Rules in Land Compensation Act 1961
Compensation for tenants • • • •
Tenancies for a year or from year to year Dispossession under notice to quit Or compensation under s20 of 1965 Act Minimum compensation
Compensation (2) • Basic six rules: sec 5 of LCA 1961 • Statutory planning assumptions – now amended • Disregards of effect of scheme –statutory rules in s6 and 1st Sched to 1961 Act
Six rules 1. No allowance for compulsion 2. Open market value 3. Disregard special suitability or adaptability where due to statutory powers or no market apart from authority with CPO powers 4. Disregard unlawful uses
Six rules (2) 5. Equivalent reinstatement 6. Disturbance and other losses
Compensation (3) • • • •
Injurious affection and severance Land must be “held with” S44 LCA ‘73 – effect of whole works Consider whether some injurious affection on at least some of claimant’s land (Tollgate Hotels v SofS for Transp [2006]) • Before and after valuations?
Additional payments • Basic loss payments • Owner’s loss payments • Home loss payments
Statutory planning assumptions • Any planning permission in force • Permission that could reasonably have been expected to be granted “Appropriate Alternative Development” (AAD) on valuation date and on assumption scheme cancelled on date of notice of CPO being made • Prospect of pp (hope)
Statutory planning assumptions • In relation to highways, must assume that no highway will be constructed to meet same or substantially the same need • Apply to LPA for certificate of AAD • Either party can appeal to Upper Tribunal
Scheme rules • S.6 and 1st Sched, 1961 Act • Disregard development or prospect of development that would be unlikely but for scheme • s.9 of 1961 Act, no account of any depreciation due to indication of compulsory acquisition • Pointe Gourde principle
Compensation where no land acquired • S10 of CPA 1965 • Interferences with legal rights such as easements, rights of access to highway and restrictive covenants • Depreciation in capital or, for temporary interferences, notional rental, values
Tactics • Blight notices: beware occupational requirements • Consider landownership units if betterment likely to arise • Keep diary and record all dealings • Consider duty to mitigate but generally only after Notice to treat served
Barry Denyer-Green