12.—(1) For the purpose of assessing compensation in respect of loss or damage consisting of depreciation of the value of an interest in land, the rules in sections 5 and 5A of the Land Compensation Act 1961 M1, so far as applicable and subject to any necessary modifications, have effect as they have effect for the purpose of assessing compensation for the compulsory acquisition of an interest in land.
(2) Where an interest in land is subject to a mortgage—
(a)compensation is to be assessed as if the interest were not subject to the mortgage;
(b)a claim for compensation may be made by any mortgagee of the interest, but without prejudice to the making of a claim by the mortgagor;
(c)compensation is only payable to any mortgagee of the interest in respect of the interest which is subject to the mortgage;
(d)compensation which is payable in respect of the interest which is subject to the mortgage is to be paid to the mortgagee or, if there is more than one mortgagee, to the first mortgagee, and must in either case be applied by that mortgagee as if it were the proceeds of sale of the interest.
Marginal Citations
M1Section 5 was amended by sections 70 and 84 of, and paragraph 1 of Schedule 15 and Part 3 of Schedule 19 to, the Planning and Compensation Act 1991 (c. 34), section 32 of the Neighbourhood Planning Act 2017 (c. 20) and S.I. 2009/1307. Section 5A was inserted by section 103 of the Planning and Compulsory Purchase Act 2004 (c. 5) and amended by paragraph 1 of Schedule 16, and paragraph 9 of Part 2 of Schedule 18 to the Housing and Planning Act 2016 (c. 22), and by S.I. 2009/1307.