Total extinguishment is a Head of Claim under compulsory purchase order compensation falling under Rule 6 of Section 5 of the 1961 Land Compensation Act.
Businesses can oblige an Acquiring Authority to acquire their business interest in two sets of circumstances:
- That the business claimant qualifies under Section 46 of the Land Compensation Act 1973.
- That as a direct result of the compulsory purchase order, their business has not been able to relocate.
The Section 46 route sets out four separate qualifications for a business to be able to claim total extinguishment:
- The claimant must be over the age of 60.
- All other shareholders in the business (with the exception of the claimant's spouse) must be over the age of 60.
- That the rateable value on the premises occupied by the business must be below £34,800.
- That no part of the business' goodwill has been sold.
The second route whereby a claim can be submitted for total extinguishment is in circumstances where a business has been unable to relocate. Under such a route, the claimant must be able to prove that all reasonable endeavours have been used to try and relocate. Often an Acquiring Authority will put the claimant under a strict burden of proof in order to validate such a claim.
A total extinguishment route can provide closure for a claimant and also be a source of significant compensation. Roger Hannah & Co can provide professional advice both on the claims for total extinguishment together with assistance as to the level of a business' value. In certain circumstances, we would also engage forensic accountants as part of the exercise in assessing the value of the loss suffered by the claimant.
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