The Land Compensation (Additional Compensation) (England) Regulations 2024

Part 3 CLAIMS FOR ADDITIONAL COMPENSATION

Procedure for making a claim for additional compensation

9.  A claim for additional compensation must—

(a) be made to the acquiring authority;

(b) be made in writing;

(c) set out the title of the original compulsory purchase order;

(d) provide a statement of the extent, description and situation of the land interest comprised in the original compulsory purchase order in respect of which the claimant or, where applicable, the claimant’s predecessor in title was entitled to compensation (“the claimant’s land”), including a postal address with postcode or Ordnance Survey National grid reference point;

(e) set out the original amount(1) that was awarded or agreed to be paid to the claimant or, where applicable, to the claimant’s predecessor in title;

(f) set out details of the compensation claimed, distinguishing the amounts of additional compensation(2), qualifying losses(3), costs and interest under separate heads and showing how the amount claimed under each is calculated, with supporting evidence;

(g) set out the basis on which the claimant is eligible for additional compensation.

Additional procedure relating to mortgaged land

10.—(1) Where the conditions in paragraph (3) apply the claim for additional compensation must also include—

(a) the name and address of the mortgagee,

(b) where the claimant is the mortgagee, a statement to this effect,

(c) the mortgagee’s reference or roll number, and

(d) a statement of the approximate amount of the mortgage debt remaining to be paid to the mortgagee as at the date the claim is sent to the acquiring authority.

(2) If there is more than one mortgage, the requirements in paragraph (1) must be set out separately for each mortgage to the extent that they apply.

(3) The conditions referred to in paragraph (1) are that—

(a) the claimant’s land was subject to a mortgage directly before it was acquired by the acquiring authority through the original compulsory purchase order, and

(b) any amount of the mortgage debt remains to be paid as at the date the claim is sent to the acquiring authority (“the unpaid amount”).

Procedure on receipt of a claim

11.—(1) On receipt of a valid claim for additional compensation the acquiring authority must determine whether it has enough information to assess the amount of additional compensation payable to the claimant including any amounts for qualifying losses, interest and costs, and must write to notify the claimant that it has received the claim and either—

(a) that it requires no further information, or

(b) of the further information it requires.

(2) The acquiring authority must notify the claimant where it considers a claim to be invalid together with its reasons.

(3) A valid claim for additional compensation is one that complies with the requirements of regulation 9 and, where applicable, regulation 10.

(4) If the claimant and acquiring authority cannot agree the amount of additional compensation due to be paid following receipt of a valid claim, the acquiring authority must inform the claimant that questions of disputed compensation may be referred for determination by the Upper Tribunal(4).

(5) The additional compensation due must be paid to the claimant unless the conditions described in regulation 10(3) apply in which case—

(a) where the unpaid amount is the same as or less than the additional compensation due, an amount equal to the unpaid amount is to be paid to the mortgagee, or

(b) where the unpaid amount exceeds the additional compensation due, the additional compensation due is to be paid to the mortgagee.

(6) Where there is more than one mortgage, payment is to be made in order of priority of those mortgage debts.

Qualifying losses

12.—(1) A claim for additional compensation may include an amount in respect of qualifying losses provided that—

(a) those losses were reasonably foreseeable at the time the original compulsory purchase order was confirmed,

(b) the claimant has taken all reasonable steps to mitigate those losses, applying the same rule concerning the duty of a person to mitigate loss as applies to damages recoverable under the common law of England and Wales, and

(c) those losses do not include sums claimed by the claimant under other heads of claim so as to amount to double recovery by the claimant, such as in respect of costs or interest.

(2) Where the original amount(5) included a sum in respect of compensation under section 5(6) of the Act for disturbance or any other matter not directly based on the value of land, that sum is to be deducted from the additional compensation payable if it would not have been paid had the original compensation amount been assessed without the application of section 14A of the Act.

Costs

13.—(1) A claim for additional compensation may include compensation in respect of the claimant’s expenses reasonably incurred in—

(a) making an application for a direction for additional compensation under paragraph 1(2) of Schedule 2A to the Act, provided that such a direction was made, and

(b) making a claim for additional compensation under paragraph 1(5) of Schedule 2A to the Act, other than any expenses incurred in connection with an application under section 17 or appeal under section 18 of the Act.

(2) Section 4 of the Act(6) applies to claims for additional compensation as if—

(a) in paragraph (1)—

(i) in sub-paragraph (a), for “unconditional offer in writing of any sum as compensation” there were substituted “offer of a sum for additional compensation on receipt of a valid claim for additional compensation”;

(ii) sub-paragraph (b) were omitted;

(iii) in the words after sub-paragraph (b), the words “or, as the case may be, after the time when in the opinion of the Upper Tribunal the notice should have been delivered” were omitted;

(b) paragraph (2) were omitted;

(c) in paragraph (3)—

(i) the words from “has delivered a notice” to “this section and” were omitted;

(ii) for “made an unconditional offer in writing to accept any sum as compensation” there were substituted “sent a valid claim for additional compensation setting out a sum for additional compensation”.

Interest

14.—(1) An additional compensation claim may include a sum in respect of accrued interest on any payment under paragraph 2(2) of Schedule 2A to the Act but not on any amounts in respect of qualifying losses or costs.

(2) Accrued interest is to be calculated in respect of the period beginning with the date on which the original amount was paid to the claimant or the claimant’s predecessor in title and ending with the date the additional compensation claim is paid, at an annual rate of 0.5 percentage points below the Bank of England base rate.

(3) Where the original amount was paid in more than one installment the date of payment for the purposes of paragraph (2) is to be taken to be the date of the last payment.

(1)

See paragraph 2(3) of Schedule 2A to the Act for the meaning of “original amount”.

(2)

See paragraph 2(2) of Schedule 2A to the Act for the calculation of the amount of additional compensation.

(3)

See paragraph 6(2) of Schedule 2A to the Act and regulation 13 of these Regulations for the meaning of “qualifying losses”.

(4)

See section 1 of the Act.

(5)

See paragraphs 2(3), 4(2) and (3) and 6(2) and (3) of Schedule 2A to the Act for the meaning of the “original amount”.

(6)

Section 4(1) and (3) was amended by S.I. 2009/1307.