As a Practice we have been involved in a wide number of claims relating to residential property claims arising from urban regeneration schemes as well as infrastructure projects including High Speed 2. We have experience in dealing with claims ranging from terraced investment and owner occupied properties through to large country estates.

The underlying principle of compensation arising from the compulsory acquisition of land is that of equivalence. This means that a claimant should be no worse and no better off in financial terms than they would have been if their interest had not been compulsorily acquired. Section 5 of the Land Compensation Act 1961 lies at the heart of the Compensation Code.

In accordance with Rule 2 of Section 5 of the Land Compensation Act 1961, a claimant is entitled to the Market Value of their land/property. When assessing the level of compensation, regard is paid to the “no scheme world”, i.e. the effect of the CPO (both positive and negative) is ignored and the value of the land/property to be taken is on the basis of open market value.

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In addition to the value of land/property, a claimant is also entitled to additional compensation normally referred to as “disturbance” under Rule 6 of Section 5 of the Land Compensation Act 1961. Disturbance compensation includes all costs reasonably associated with the CPO. The actual level of compensation will vary from claim to claim and is dependent upon the claimant’s specific circumstances. However, a claimant has a duty to mitigate his/her loss. Examples of items which are claimed under “disturbance” include removal costs and acquisition fees incurred in purchasing a relocation property (including Stamp Duty Land Tax). Other incidental costs are claimable which are as a direct consequence of the CPO such as mortgage redemption penalties and arrangement fees are also claimable.

Residential investment owners are entitled to the reimbursement of incidental costs incurred in acquiring a replacement investment property, as a result of being disturbed from owning the acquired property, including Stamp Duty Land Tax and any legal or other professional costs reasonably incurred in connection with the acquisition of the property.

There is also a series of loss payments which can be paid in conjunction with a claim, subject to certain qualifying criteria. These payments are dependent upon the nature of the ownership of the property. For example a home owner and occupier would be entitled to a Home Loss Payment based upon 10% of Market Value, whereas a residential investor would receive a Basic Loss Payment based upon 7.5% of Market Value.

Finally, a claimant can claim for reasonable surveyors’ fees incurred in preparing and negotiating a compensation claim together with reasonable legal fees where incurred.

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Professional representation is essential in maximising your entitlement. Roger Hannah have vast experience in maximising compulsory purchase order compensation on behalf of their clients.