Frequently Asked Compulsory Purchase Questions

You have a right to challenge a CPO by objecting. You need to understand the legal protections and entitlements afforded to property owners and your right to fair compensation for the value of the property being acquired. Also any business losses, known as disturbance and any costs you incur. There is a strict statutory process and safeguards in place which we can explain and advise on to ensure property owners and occupiers are treated fairly throughout the compulsory purchase process.

Compulsory purchase is a legal process where a governmental body or authority can acquire land or property without the owner's consent, usually for public infrastructure projects such as roads, railways, or urban regeneration schemes. The criteria for using compulsory purchase involve demonstrating a public need, such as improving transportation or enhancing public amenities. The party losing their property has a statutory right to compensation as a result of the CPO

There is no one answer. Residential and commercial property attracts different levels of compensation and the method of calculation varies. Factors to consider when determining compensation include the market value of the property, any special characteristics or potential alternative uses, and any losses incurred as a result of the acquisition. Market value of property, statutory payments, costs incurred and any losses as a result of the compulsory purchase are the major heads of claim.

The type and level of compensation varies depending on your specific situation. Do you own the freehold interest in the property or leasehold ? Or you in occupation of the property or is it an investment property you rent out to a tenant ? There are three broad compensation headings when you lose your property through compulsory purchase. The value of the Property, any loss of income because of the loss of the property and any costs incurred in dealing with the CPO. In addition to this you are entitled to statutory loss payments.

There is no best time to do a deal and there are many factors which can affect the negotiating process. In some instances it can be beneficial to reach an early settlement, there are benefits to the acquiring authority in doing quick deals and avoiding expensive legal fees. However there are many acquiring authorities (e.g. a Council) that make unreasonably low offers in advance of compulsory purchase powers and it would not be advisable to reach an early settlement. I would always recommend opening discussions early as there is never any benefit in ignoring the situation.

This is very much in the ‘how long is a piece of string’ territory. We act for clients in Southwark in South East London where there process has been dragging on for over fifteen years. At Woolwich in east London client shave been waiting over ten years for the compulsory purchase to progress. The timeline starts once an acquiring authority ‘makes’ the CPO. From then, if everything goes to plan, possession of your property could be taken approximately fifteen to eighteen months later. However they could also wait a further six years before they take possession.

You will need to take advice from a chartered surveyor specialising in compulsory purchase. In advance of taking on any work your surveyor will ask for a legal undertaking that ensures the acquiring authority or developer pay for your advice. Once the compulsory purchase is confirmed there is a statutory obligation on the acquiring authority to compensate property owners and occupiers for their surveying, legal and any other reasonable and necessary professional advice you are required to take. The affected party should not pay any costs apart from an costs incurred in objecting to the compulsory purchase order – these fees are not generally compensated.

Once a compulsory purchase order is made, you have twenty one days to object to the order. If you have not reached a settlement with the other side, you should object in order to protect your position. If successful with your objection you may convince the acquiring authority to remove your property from the scheme or in some instances, stop the compulsory purchase order entirely. It should be noted, fees to object are not compensated unless you are successful.

Certainly not. Most cases do not need to referred to the Upper Tribunal of the Lands Chamber. It is much more common that both sides agree to the level of compensation. However, there can be occasions where there is a strong difference of opinion regarding the value of property or the compensation owed to a business. There can be situation where one side believes the Property should be valued as development land for housing and the other side believe it should be based on open storage industrial values. Ona major difference liken this then a Tribunal reference might be necessary. Olden Property can act as expert witness at the Upper Tribunal.

You will need a solicitor at certain stages of the CPO process. If you choose to object and appear at the Public Inquiry, you may need to instruct a solicitor at this point. Once you agree a compensation package with the acquiring authority you will need to instruct a solicitor to deal with the contract and conveyancing. Olden Property works with a number of excellent solicitors we would be happy to recommend. m description