CPO

Question 1

What is a usual CPO procedure? basic process and detail?

Answer 1

• The Basic process: Authorization Act of Parliament>Promotion of Scheme>Notice of Acquisition and Entry>Payment of Compensation

Question 2

What is a detail CPO procedure?

Answer 2

• Preliminary inquiries
• CPO preparation and submission
• Notification, and Objecting to a CPO (21 days) - & eventual inquiry
• Decision (confirmation/modify)
• Possession and acquisition
• Compensation

Question 3

What are CPO powers? what is needed for ?

Answer 3

Legislative powers which enable public bodies to acquire land compulsorily.

Used to help deliver social, environmental and economic change.

Question 4

What is principle for a CPO to be confirmed? what does the Confirming Authority expect?

Answer 4

• There needs to be a compelling case in the public interest.
• The confirming authority expects the AA to demonstrate they have taken reasonable steps to acquire all of the land and rights by agreement in the first instance.

Question 5

Name some of the entities who have CPOs powers to acquire?

Answer 5

• Government (various departments)
• Local authorities (national park authorities)
• Statutory undertakers
• Government executive agencies (e.g. Homes England)
• Health service bodies

Question 6

Name some of the acts trough which you can obtain powers?

Answer 6

• Royal Prerogative
• Private Act (Special Act)
• Public General Act
• Transport and Works Act 1992

Question 7

What are the 6 rules for assessing compensation and where are they found?

Answer 7

They are stated under Sec.5 of the Land Compensation Act 1961:

• R.1 No scheme world (CP to disregarded)
• R.2 Market Value (as if sold on Open Market)
• R.3 Special Value/suitability to be disregarded (Point Gourde Principle)
• R.4 Any uplift from illegal use must be disregarded
• R.5 Equivalent reinstatement (when there’s no market evidence)
• R.6 Disturbance - based on the value to claimant (and R.2 shall not affect the assessment or any other matter directly based on the value of land)

Question 8

What type of notices can be served to exercise CPO powers?

Answer 8

• GVD
• Notice to Treat and Entry
• Notice for temporary occupation – Neighbourhood Planning Act 2017 (3 months notice)

Question 9

What are the differences between a GVD and NTT?

Answer 9

• General Vesting declaration – used to transfer the ownership before the compensation is agreed.
• NTT is legal notice to inform the owner that the AA intends to take possession and buy the land, and states a date when the entry will be made for the purpose of carrying out the works.
• Another difference is that the NTT will have details of the compensation that will be paid, whereas a GVD will not state any sums.

Question 10

What are the pros and cons of GVD and NTT?

Answer 10

• GDV allows the authority to acquire a clean title of the land regardless of any type of title/interest (even the ones not spotted) and sets a transfer date before the compensation is agreed; However, the GDV cannot be withdrawn so has no flexibility once served;
• NTT needs to be served upon all land interest present on the land and can be modified or withdrawn if needed; If any parties are left out the AA it can cause big issues;

Question 11

What are the key principles outlined in RICS: Surveyors Advising in Respect of Compulsory Purchase and Statutory Compensation (2017)?

Answer 11

Key principles that are manadatory to follow:
- Competence - understand statute and CPO code
- Duty in providing advice - advise on assumptions made / estabilsh material evidence / provide balanced advice
- Changes to instruction - ensure no conflict arises
- Inspection - adequate to provide advice, record of condition
- Reporting - consider all matters relevant to instruction
- Fees - must be reasonable / client liable for fees not borne by AA
- Recording time
- Disputes - through Upper Tribunal or ADR (RICS)

Question 12

What sections in the red book might you have reference too when carrying out CPO instructions?

Answer 12

• VPGA 16 Global Standards UK Supplement
• General requirements of PS1 and PS2
• VPS 1-5 not mandatory – VPS 1 and 3 provide a useful checklist

Question 13

What are the heads of claim?

Answer 13

• Market Value
• Severance and Injurious Affection
• Disturbance
• Loss Payments
• Interest

Question 14

What bases can be adopted to value acquired land?

Answer 14

• Open MV (EUV)
• Ransom Value
• Development Value
• Hope Value

Question 15

What is the definition of Rule 2?

Answer 15

• The amount the land might realise if it was sold in the open market by a willing seller

Question 16

How does Rule 2 differ to MV red book definition?

Answer 16

• No willing buyer in the definition

Question 17

What is the compensation Code?

Answer 17

Collective word to describe case law and legislation governing Compulsory Purchase

Question 18

What are the main statutes governing Compensation Code?

Answer 18

• Land Compensation Act 1961
• Compulsory Purchase Act 1965

Question 19

How did you calculate loss payments?

Answer 19

• Home loss Payments: 10% of MV subject to a cap (£78,000 or 7,800), regularly reviewed. Claimant must be in occupation as main residence for 1 year prior to displacement.
• Basic Loss Payment: 7.5% MV subject to cap (£75,000). Applies to all claimants with interest in land held for at least 1 year before relevant date (date of valuation).
• Occupier’s loss – greater of (subject to max £25,000):
• 2.5% of the value of the interest
• £2.5 psm of land
• £25 psm of GEA of building
• or min £2,500

Qualifying interest – freehold or interest as tenant for longer than one year prior to displacement

Question 20

What is Betterment? what is the relevant sec?

Answer 20

Betterment occurs when there is an uplift in value on the retained land as a result of the scheme/development. Any value uplift is to be offset against the compensation for the land taken.

• S7 Land Compensation Act 1961

Question 21

Is there a limit for implementing a CPO from confirmation?

Answer 21

Yes, 3 years

Question 22

What is Disturbance and who is entitled to?

Answer 22

Disturbance comprises any additional costs related directly to land taken through compulsory purchase, such as relocation, temporary disruption to business or business or total extinguishment.

Disturbance can be claimed by freeholder and occupier, that can prove a loss arising from the scheme.

Question 23

What is the difference between Severance and Injurious Affection? Where is this outlined?

Answer 23

• Severance is the decrease in value of the retained land as a result of physical impact of the land taken
• Injurious Affection is the decrease in value of the retained land as a result of use of the scheme (nuisance).

Question 24

How is Severance and Injurious Affection calculated?

Answer 24

Value of the land before and value of land after = diminution in value

Question 25

What is Material Detriment? give me an example

Answer 25

Material detriment occurs when a claimant suffers additional damages/losses to the remaining land as a result of the land required to be CPOed. e.g. if a part of a land is taken but the remaining part is heavily affected and devalued (loss of access), the AA must acquire the whole land plot

Question 26

What is the valuation date with GDV and NTT?

Answer 26

Section 5A Land Compensation Act 1961 * NTT – Date acquiring authority enters/takes possession or date when assessment is made * GVD – Vesting date or date when assessment is made

Question 27

How would you value a ransom strip?

Answer 27

The value of a ransom strip can be calculated by following the principles in the following case law: * Stokes v Cambridge (1961): 1/3 of the uplift of the unlocked development value. * Ozanne v Herts (1991): where access is sole key to unlocking development value deduction should be higher proportion – increase in value split equally between both parties to reflect equal negotiating positions, 50%. * Batchelor v Kent (1992): ransom value much lower where there is more than one possible access, even if ransom strip most convenient (15% here).

Question 28

What is a Blight notice?

Answer 28

Blight notice is served by the claimant to the AA and is triggered when the potential acquisition of land by the acquiring authority to construct a development scheme has caused a fall in property values and made them unsaleable.

Question 29

What if the Acquiring Authority Objects To The Blight Notice?

Answer 29

The acquiring authority can object to the blight notice and serve a counter notice on one or more of the following grounds: * No part of the land is in a relevant category of blight; * The acquiring authority does not propose to acquire any of the land; * The acquiring authority only proposes to acquire part; * On the date of the notice, the claimant is ineligible; * The interest of the claimant does not qualify.

Question 30

How do you qualify for blight?

Answer 30

1. You must have a qualifying interest in the land 2. Land must be blighted 3. Reasonable endeavours to sell

Question 31

What is a CAAD?

Answer 31

Certificate of appropriate alternative development (CAAD) – It's application made by a landowner to establish whether there's alternative development value of their land in a no scheme world (virtual planning application)

Question 32

When is an owner entitled to a P1 compensation (Land Comp Act 1973)?

Answer 32

When no land is taken, but a result of the scheme use the landowner suffers a depreciation of value of its property which can be caused by: - noise - vibration - smell - fumes - smoke - artificial lighting - discharge of solid or liquid substance