Hereford Link Road - Compensation Guide for Owners and Occupiers

Transcription

1 Hereford Link Road - Compensation Guide for Owners and Occupiers THE COUNTY OF HEREFORDSHIRE DISTRICT COUNCIL (EDGAR STREET GRID AND LINK ROAD) COMPULSORY PURCHASE ORDER 2013 MARCH

2 1 INTRODUCTION The Council is promoting the redevelopment of Hereford to deliver more and better paid jobs, new homes, improved transport and a more accessible city. This document is about the proposed Link Road from Edgar Street to Commercial Road. The route is shown on the plan attached at the back. The route has been chosen with great care but, inevitably, some businesses will have to move for the road to be built. Others near the road may be affected by alterations to the way their premises are accessed in future or by other changes. The Council recognises that this may be disruptive and is committed to supporting those affected through this process. To build the road means that this Council is to make a compulsory purchase order in relation to the land required for its proposals, namely the County of Herefordshire District Council (Edgar Street Grid and Link Road) Compulsory Purchase Order 2013 (" the CPO"). The Council will be the acquiring authority for the purposes of the CPO and for acquisitions by agreement. The advice and information available within this document is relevant whether land is acquired by the Council by agreement or compulsorily under compulsory purchase order powers. The purpose of this document is to explain how the Council will work to help make the process as straightforward as we can, remembering that the Council must work in accordance with what the law and government best practice requires. You ll also find information here about any compensation entitlement which may apply to you. 2. RELOCATION STRATEGY Moving a business or making other changes takes time and careful planning. Moving too soon may actually create more problems than it solves whilst moving at the last possible moment may be just as difficult. Where a business needs to move, we ll do our best to help you stay close by. The following key principles are relevant to assisting in this process. 3 KEEPING OCCUPIERS UPDATED The Council has and will work to keep owners and occupiers updated on the progress of the CPO and likely dates that their property will be required, to help you plan for relocation and site finding. This will be carried out through the use of a website, issue of regular updates notes/newsletters and meetings. 4 SCHEDULE OF AVAILABLE PROPERTY 4.1 The Council keeps an up-to-date list of sites and premises that may suit you. This is freely available and can be found at We re always keen to hear of other opportunities and we welcome contact from site owners and agents. If you know of a site which isn t listed, do please tell us. 4.2 If you don t have access to the internet, please let us know and we ll make other arrangements for you to see the list of what s available. 2

3 5 RELOCATIONS PRIOR TO CONFIRMATION OF THE CPO (NON-RESIDENTIAL OCCUPIERS) 5.1 The Council will assess all cases of relocation and compensation in accordance with the legislation and the statutory compensation code. Full details of the code are available at The Council will, as a general rule, look to assist occupiers to relocate after the confirmation of the CPO. 5.2 Relocation requirements prior to the confirmation date will be considered in the following circumstances Where there are specific requirements and circumstances that require a continuation of service or the relocation has specific constraints with respect to timing Where hardship would be incurred by the occupier if relocation were not agreed in advance. These cases will be assessed on an individual basis dependent on the circumstances. 6 AGREEMENT OF RELOCATION PACKAGES/LEVELS OF COMPENSATION The Council will agree levels of compensation on a full and final settlement basis with occupiers in respect of relocation costs and other disturbance payments payable, conditional upon the confirmation of the CPO. 7 RELOCATIONS AFTER THE CONFIRMATION OF THE CPO (NON-RESIDENTIAL) The Council will work with the affected owners and occupiers to identify appropriate relocation opportunities and will pay owner/occupiers reasonable costs of acquiring and holding relocation properties in accordance with the compulsory purchase compensation code. The schedule of available property discussed above will be used in these discussions. 8 PAYMENT OF FEES Claimants reasonable fees and costs incurred in negotiating their compensation will be met by the Council. The timings of these payments are set out below: 9 PAYMENT OF FEES PRIOR TO THE CONFIRMATION DATE OF THE CPO 9.1 Fees will be paid to claimants prior to the CPO confirmation date in the following circumstances Where a transaction (conditional, deferred or immediate) is agreed prior to the confirmation. Under these arrangements fees which are reasonable and agreed by the Council will be payable Where specific advice is required and agreement is reached to meet fees in advance of the CPO. These include where hardship would be incurred by the claimant if fees were not met in advance. These cases will be assessed on an individual basis dependent on the circumstances. 3

4 10 PAYMENT OF FEES AFTER THE CONFIRMATION OF THE CPO Reasonable fees incurred by claimants will be met in accordance with good industry practice and in accordance with the compulsory purchase compensation code Compensation Heads of Claim Depending on the particular circumstances in each case compensation can be claimed under the following categories, which are referred to as Heads of Claim (a) (b) The Value of the Land Taken Severance and Injurious Affection This means the depreciation in the value of land you retain where part only of your land holding is acquired; (c) Disturbance Apart from the limited rights of an investment owner to recover incidental costs in particular circumstances, this Head of Claim is only available to occupiers of the property. It represents the costs and losses incurred as a result of being disturbed from the occupation of the property; (d) Fees The reasonable surveyors fees incurred in preparing and negotiating a compensation settlement together with solicitors fees for any conveyancing will be paid by the Council. 11 ENTITLEMENT TO LOSS PAYMENTS Sections 106 to 110 of the Planning and Compulsory Purchase Act 2004 provide for Basic and Occupiers loss payments to be paid to claimants other than residential owners/occupiers Entitlement to Basic Loss Payments Section 106 of the Planning and Compulsory Purchase Act 2004 inserts a new section 33A into the land Compensation Act A person who is an owner or tenant of property that is compulsorily acquired (and who has held that interest for no less than a year) is entitled to a payment called a basic loss payment. The provisions therefore do not apply to licensees, lodgers, squatters, trespassers or to the acquisition or creation of an easement or right of way. The payment will be made in addition to the compensation paid for the value of the interest in the property and the disturbance costs. The amount of this payment is to be assessed at the rate of 7.5% of the value of the interest, subject to a maximum of 75,000. If the recipient is entitled to a home loss payment in respect of any part of the property which is a dwelling, the value of the interest in the dwelling part of the property must be deducted from the value of the interest in the whole when assessing the basic loss payment. 4

5 11.2 Entitlement to Occupier s Loss Payments Section 107 of the Planning and Compulsory Purchase Act 2004 inserts a new Section 33B and a new Section 33C into the Land Compensation Act Section 33C relates to occupiers of nonagricultural land that is compulsorily acquired. Both sections provide for the payment of what is called an occupier s loss payment (in addition to the basic loss payment) to any person/business that satisfies the conditions for the basic loss payment and which has also occupied the land being acquired for a period of no less than a year. The amount of the payment is assessed at a rate of 2.5% of the value of the occupier s interest, or on the basis of a formula based on the area of the land or the floor space of the building being acquired, whichever gives the greatest figure, in each case subject to a maximum of 25,000. Again, if part of the property is a dwelling in respect of which the recipient could claim a home loss payment, the value of the interest in the dwelling must be deducted from the value of the interest in the whole when assessing the occupier s loss payment. 12 APPLICATIONS FOR AN ADVANCE PAYMENT OF COMPENSATION UNDER SECTION 52 OF THE LAND COMPENSATION ACT If the Council takes possession of property before compensation has been agreed, it is obliged under Section 52 of the LCA 1973, if requested in writing, to make an advance payment of any compensation which is due for the acquisition of any interest in land The amount payable is 90% of the acquiring authority s estimate of the compensation due, or, if the amount of the compensation has been agreed, 90% of that figure; and it must be paid within three months of the claimant s written request The Council will adopt a responsible approach towards making such payments, in terms of adhering to the three month statutory time limits and the requirement to pay 90% of their estimate or the agreed sum, in order to help claimants to have sufficient liquidity to be able to make satisfactory arrangements for their relocation. Prompt and adequate advance payments will also reduce the amount of the interest ultimately payable by the authority on the outstanding compensation due The Council will also consider making earlier payments, where justified, to enable claimants to proceed with relocation. The Council may use its powers to make payments before taking possession to assist relocation, if that is appropriate If the property is mortgaged the Council as acquiring authority will reduce the advance payment by the amount of the outstanding mortgage sum. In some circumstances the Council will make the advance payment direct to the mortgagee of the property to discharge the mortgages interest. Advance payments are made without prejudice to negotiating a final agreement on any compensation due. Additional advance payments can be requested whenever there is an increase in the Council s estimate of compensation due, or when the final amount of compensation has been agreed Solicitors acting for the Council will require the claimant (or their solicitor) to provide evidence of entitlement to transfer the claimant s interest in the land being acquired. The processes of making advance payments and progressing the land transfer will be run in parallel until the final payment of compensation is paid with the completion of the transfer of title or rights. The claimant will be asked to agree the amount of the advance payment to be made and any sum to 5

6 be paid to a mortgagee to discharge their interest. Any statutory interest due will be paid along with the advance payment. A local land charge will be registered by the Council immediately prior to any advance being paid. If the claimant is ultimately discovered not to be entitled to the payment made in whole or in part this must be repaid to the Council. 13 OBJECTIONS TO THE CPO 13.1 For the avoidance of doubt the Council is not responsible for the payment of fees and costs incurred in the preparation of objections to the compulsory purchase order. 14 FURTHER INFORMATION 14.1 For further information about the business relocation strategy and compensation please contact either: Ian Higgs Development Manager Herefordshire Council PO Box 167 Plough Lane Hereford HR4 OXH Tel: ihiggs@herefordshire.gov.uk or Andrew Cook Lambert Smith Hampton Interchange Place Edmund Street Birmingham B3 2TA Tel: acook@lsh.co.uk 6

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