What is a GVD
General Vesting Declaration
What is a GVD used for
It is a compulsory purchase process where an acquiring authority can acquire land ownership by issuing a notice to all interested parties
What are the positives to using a GVD -2
-it bypasses the negotiation-heavy Notice to Treat process
- it secures possession quickly
What are the negatives to using a GVD -3
- it requires meticulous preparation and serving of notices to ensure legal compliance
- potential for delayed entry
- Fixed purchase price which may not reflect changes in market value
What is an NT
Notice to Treat
What is an NT used for
It is a formal notification served by an authority to a property owner to initiate the process of acquiring land, the authority is willing to negotiate the purchase of land and pay compensation
How long does a landowner have to respond to an NT
21 days
What is the notice period for an authority to publish a GVD
2 months
When can the vesting date be for a GVD
3 months from the date of the GVD
What is the difference between a GVD and NT for compensation
Compensation for GVD is assessed at the vesting date and interest on compensation also accrues from this date until the date of payment. Compensation for NT is assessed at the date of entry and taking possession
Explain the NT process
a notice to treat is served followed by a notice of entry followed by a conveyance. Owners need to respond to the NT with details of their interest in the land
What is the time limit for using a GVD once a CPO is operational
3 years
Give examples of what would be included within a Heads of Loss - 8
- Market value of land
- severance / injurious affection
- disturbance
- loss of crop/stock
- loss of development value
- business loss
- professional fees
- interest
What is severance
It occurs when the retained land is diminished in value or physically divided from the holding
What is injurious affection
The depreciation in value or loss of amenity to retained land because of compulsory purchase
Give some examples of injurious affection - 4
- loss of access
- increase noise and light pollution
- remaining fields too small or poorly drained
- severance of utility supplies
Give some examples of severance - 4
- Holding is split in two
- access disrupted
- Loss of contiguity
- Shape/size issues
Which act lays downs the rules for assessing compensation
Section 5 of the Land Compensation Act 1961
What is the basis of valuation for compensation - 5
- Willing seller on the open market
- ‘might be expected’
- ‘Rebus Sic Stantibus’
- ‘Disregarding the scheme’
- Evidence’
Give examples of disturbance - 3
- Damage to utilites servicing the farm
- Cleaning costs due to excess dust and mud
- Loss of silage crop due to dust contamination
What is disturbance
Anything which is not too remote and is a natural and reasonable consequence of the acquisition is to be compensated
What is the current basic loss payment
7.5% of the value of property acquired capped at £75,000
What is basic loss payment
A statutory addition to compulsory purchase compensation to acknowledge forced sale of their property
What is the current occupiers loss payment: agricultural land payment
2.5% of the value of property acquired capped at £25,000
