Land Compensation Act 1973

Advance payment of compensation

52 Right to advance payment of compensation

(1) Where an acquiring authority have taken possession of any land the authority shall, if a request in that behalf is made in accordance with subsection (2) below, make an advance payment on account of any compensation payable by them for the compulsory acquisition of any interest in that land.

(2) Any request under this section shall be made by the person entitled to the compensation (hereafter referred to as " the claimant"), shall be in writing, shall give particulars of the claimant's interest in the land (so far as not already given pursuant to a notice to treat) and shall be accompanied or supplemented by such other particulars as the acquiring authority may reasonably require to enable them to estimate the amount of the compensation in respect of which the advance payment is to be made.

(3) Subject to subsection (6) below, the amount of any advance payment under this section shall be equal to 90 per cent, of the following amount, that is to say—

(a) if the acquiring authority and the claimant have agreed on the amount of the compensation, the agreed amount;

(b) in any other case, an amount equal to the compensation as estimated by the acquiring authority.

(4) Any advance payment under this section shall be made not later than three months after the date on which a request for 'the payment is made in accordance with subsection (2) above or, if those three months end before the date on which the acquiring authority take possession of the land to which the compensation relates, on the date on which they take possession as aforesaid.

(5) Where an advance payment is made on the basis of an estimate under subsection (3)(b) above and the amount of that payment exceeds the compensation as finally determined or agreed, the excess shall be repaid; and if after an advance payment has been made to any person it is discovered that he was not entitled to it the amount of the payment shall be recoverable by the acquiring authority.

(6) No advance payment shall be made on account of compensation payable in respect of any land which is subject to a mortgage the principal of which exceeds 90 per cent, of the amount mentioned in subsection (3) above; and where the land is subject to a mortgage the principal of which does not exceed 90 per cent, of that amount, the advance payment shall be reduced by such sum as the acquiring authority consider will be required by them for securing the release of the interest of the mortgagee.

(7) Any advance payment on account of compensation in respect of an interest which is settled land for the purposes of the [1925 c. 18.] Settled Land Act 1925 shall be made to the persons entitled to give a discharge for capital money and shall be treated as capital money arising under that Act.

(8) Where an acquiring authority make an advance payment under this section on account of compensation in respect of any interest in land they shall deposit with the council of the district or London borough in which the land is situated particulars of the payment, the compensation and the interest in land to which it relates; and any particulars so deposited shall be registered by the proper officer of the council in the register of local land charges in such manner as may be prescribed by rules made for the purposes of this subsection under section 19 of the [1925 c. 22.] Land Charges Act 1925.

(9) Where after particulars of the advance payment made to any claimant have been registered as aforesaid the claimant disposes of the interest in the land to, or creates an interest in the land in favour of, a person other than the acquiring authority, the amount of the advance payment shall be set off against any sum payable by the authority to that other person in respect of the compulsory acquisition of the interest disposed of or the compulsory acquisition or release of the interest created.

(10) Where an advance payment has been made under this section on account of any compensation—

(a) section 76 of the [1845 c. 18.] Lands Clauses Consolidation Act 1845 and section 9 of the [1965 c. 56.] Compulsory Purchase Act 1965 (refusal of owner to convey on tender of compensation) shall have effect as if references to the compensation were references to the balance thereof remaining unpaid; and

(b) neither section 11(1) of the said Act of 1965 nor any bond under Schedule 3 to that Act or under section 85 of the said Act of 1845 (interest on compensation where possession is taken before payment) shall require the acquiring authority to pay interest, in respect of any time after the date of the advance payment, on so much of the compensation as corresponds to that payment.

(11) Where the acquiring authority, instead of taking possession of any land, serve a notice in respect of that land under section 98 of the [1957 c. 56.] Housing Act 1957 or under paragraph 3 of Schedule 1 or paragraph 10 of Schedule 3 to that Act (notice authorising existing occupier to continue in occupation where house acquired for housing purposes) this section shall have effect as if they had taken possession of the land on the date on which the notice is served.

(12) This section shall apply to compensation for the compulsory acquisition of a right over land as it applies to compensation for the compulsory acquisition of an interest in land, and shall so apply with the necessary modifications and as if references to taking possession of the land were references to first entering it for the purpose of exercising the right.

(13) In the application of this section to Scotland—

(a) in subsection (6) for any reference to a mortgage or mortgagee there shall be substituted respectively a reference to a heritable security or a heritable creditor ;

(b) subsections (7) and (11) shall be omitted ;

(c) for subsection (8) there shall be substituted the following subsection—

“(8) Where an acquiring authority make an advance payment under this section on account of compensation in respect of any interest in land, the authority shall cause notice of that fact, specifying particulars of the payment, the compensation and the interest in land to which it relates, to be recorded in the Register of Sasines and shall send a copy of the notice to the local planning authority.”;

(d) in paragraph (c) of subsection (10) for the words from the beginning to " 1965 " there shall be substituted the words " section 75 of the [1845 c. 19.] Lands Clauses Consolidation (Scotland) Act 1845 " and in paragraph (b) of that subsection for the words from the beginning to " section 85 " there shall be substituted the words " no bond under section 84 ";

(e) in subsection (12) after the words " a right" there shall be inserted the words " in or ".