Housing and Planning Act 2016

195 Power to make and timing of advance payment

(1) The Land Compensation Act 1973 is amended as follows.

(2) In section 52 (right to advance payment of compensation)—

(a) for subsections (1) to (1B) substitute—

“(1) An acquiring authority may make an advance payment on account of compensation payable by them for the compulsory acquisition of an interest in land if a request has been made under subsection (2) after the compulsory acquisition has been authorised.

(1A) In a case where the compulsory acquisition is one to which the Lands Clauses Consolidation Act 1845 applies, the acquiring authority may not make an advance payment if they have not taken possession of the land, but must do so if they have.

(1B) In all other cases, an acquiring authority must make an advance payment under subsection (1) if, before or after the request is made, the authority—

(a) give a notice of entry under section 11(1) of the Compulsory Purchase Act 1965, or

(b) execute a general vesting declaration under section 4 of the Compulsory Purchase (Vesting Declarations) Act 1981 in respect of that land.”;

(b) for subsection (4) substitute—

“(4) An advance payment required by subsection (1A) must be made—

(a) before the end of the day on which the authority take possession of the land, or

(b) if later, before the end of the period of two months beginning with the day on which the authority—

(i) received the request for the advance payment, or

(ii) received any further information required under subsection (2A)(b).

(4ZA) An advance payment required by subsection (1B) must be made—

(a) before the end of the day on which the notice of entry is given or the general vesting declaration is executed, or

(b) if later, before the end of the period of two months beginning with the day on which the authority—

(i) received the request for the advance payment, or

(ii) received any further information required under subsection (2A)(b).”;

(c) omit subsection (11).

(3) In section 52ZA (advance payments: land subject to mortgage for up to 90% of value), for subsection (1) substitute—

“(1) This section applies if—

(a) a request is made for an advance payment under section 52(1) in respect of land,

(b) the authority is required by section 52(1A) or (1B) to make the advance payment, and

(c) the land is subject to a mortgage the principal of which does not exceed 90% of the relevant amount.”

(4) In section 52ZB (advance payments: land subject to mortgage for more than 90% of value)—

(a) for subsection (1) substitute—

“(1) This section applies if—

(a) a request is made for an advance payment under section 52(1) in respect of land,

(b) the authority would be required by section 52(1A) or (1B) to make the advance payment if it were not for this section, and

(c) the land is subject to a mortgage the principal of which exceeds 90% of the relevant amount.”;

(b) in subsection (9)(c) for “section 52ZA(1)(b)” substitute “section 52ZA(1)(c)”.

(5) In section 52ZC (land subject to mortgage: supplementary provisions)—

(a) after subsection (3) insert—

“(3A) In a case where the compulsory acquisition to which the request relates is one to which the Lands Clauses Consolidation Act 1845 applies, the acquiring authority must make any payment under section 52ZA or 52ZB—

(a) before the end of the day on which the authority take possession of the land, or

(b) if later, before the end of the period of two months beginning with the day on which the authority—

(i) received the request under section 52ZA(3) or 52ZB(3), or

(ii) received any further information required under subsection (2).

(3B) In all other cases, the authority must make any payment under section 52ZA or 52ZB—

(a) before the end of the day on which the notice of entry is given or the general vesting declaration is executed, or

(b) if later, before the end of the period of two months beginning with the day on which the authority—

(i) received the request under section 52ZA(3) or 52ZB(3), or

(ii) received any further information required under subsection (2).”;

(b) in subsection (4) omit “(4) and”.