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Case Study - Compulsory Purchase Order

Case Study - Compulsory Purchase Order

Published on Friday, 13 July 2007

Ref.: JH/13/7’07    Jean Howe – Partner Kirkby & Diamond

 
Objective
The clients had received a Compulsory Purchase Order notice in respect of part of the garden of their house adjoining the M1 close to Junction 11. The client’s objective was to actually sell the house and to move away but they could not do so as a result of the Compulsory Purchase Order.

Strategy
Kirkby & Diamond inspected the property and prepared a valuation of the house on the basis of the “No Scheme World”, (i.e. assuming the new project did not exist) which obviously had to take into account the proximity of the existing motorway to the property.

Implementation
After consultation with the clients, giving advice on the expected level of compensation to be achieved, negotiations were undertaken with the Valuer acting on behalf of the Highways Agency. This resulted in the house being purchased under the Compulsory Purchase rules. Kirkby & Diamond’s clients received compensation for having to replace carpets in the house to which they were moving and they recovered the fees for the professional advice as part of the compensation settlement.

The Result
By understanding the client’s main objective, negotiations were structured in such a way that the acquiring authority paid the maximum amount of compensation to the clients because of the scheme as opposed to a reduced amount of compensation that would have been payable because the client wished to move away.
 
The clients were very satisfied with the amount of compensation paid and the compensation was agreed and the sale completed within a period of 8 weeks whereas many negotiations over compensation claims take months if not years.