Van Parts, Manchester

A company specialising in the sale of second hand van parts owned a 20,000 sq ft mill style industrial premises. The building was required as part of a business park development and was subject to a confirmed Compulsory Purchase Order.

The acquiring authority was insisting that the company relocates to alternative property. Van Parts appointed Roger Hannah & Co to represent their interests.

After inspecting the property and discussing the matter with the owners we felt there was a compelling argument for the acquiring authority to pay compensation based on the total extinguishment value of the business. This was for 2 main reasons. Firstly, it was practicaly impossible to find an affordable 20,000 sq ft industrial premises on a freehold basis (usually there is no obligation for a claimant to relocate from a freehold interest to a leasehold interest). Secondly, the nature of the use meant that environmental licences and planning permission were required as part of any relocation exercise. This further compounded the relocation difficulties.

In order to obtain total extinguishment we had to prove that there was no suitable alternative building available, which entailed a comprehensive property search. After several months we convinced the acquiring authority that relocation was not the appropriate option and they should pay a total extinguishment business value, the forced loss value of all their stock as well as the freehold market value for their building. After prolonged negotiations;this resulted in a doubling of their compensation.

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