CPO & Residential Property
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.
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.
Latest Case studiesCompulsory Acquisition of an Asset of Community Value (ACV) »
Roger Hannah & Co. has recently advised South Cambridgeshire District Council on a property held as an Asset of Community Value (ACV).A556 Knutsford to Bowden Improvement Scheme »
Following approval granted by way of a Development Consent Order (DCO) in 2014, the new A556 link road officially opened to traffic on 6th March 2017. During this time our CPO team at Roger Hannah & Co has acted on behalf of clients with properties affected by the construction of the new road.HS2 Update – Phase 2B »
Since the route of Phase 2B was announced in November 2016, our specialist team at Roger Hannah & Co has been acting on behalf of a number of clients whose properties are affected by HS2.
Latest NewsSupporting Team BEE Inspired - Race of Remembrance 11/11/18 » 7th December 2018
Marking 100 years of Armistice and then end of World War 1, we sponsor team Bee Inspired to a 12 hour endurance race for a great cause - Mission Motorsport!Promotions of Angela Juszczyk & Steven Whittle » 19th November 2018
We are delighted with the promotions of Angela Juszczyk and Steven Whittle. Both are talented surveyors who deserve the promotion that they have achieved. As a business we are continuing our rapid growth with our 50 plus strong team providing property services across the North West region and nationwide. We anticipate this growth continuing throughout 2019.Roger Hannah & Co Boosts Team With Senior Promotion » 13th November 2017
We are delighted to announce the promotion of Stephen Lashmar to Director to mark his contribution to Roger Hannah & Co.
Meet Our Team
The CPO Process
Objecting to a CPO
Residential Property and CPO
CPO and Business
Frequently Asked Questions Compulsory Purchase News Recent Case Studies