Compulsory purchase & Compensation

If you have received a letter informing you about purchasing your property because it is going to be subject to a compulsory purchase order, you should seek advice. Maurice and Associates can negotiate a fair sum on your behalf and our professional fees are usually paid by the purchasing authority.

Compulsory Purchase

What is compulsory Purchase?

Compulsory Purchase is where a government or public body is allowed to acquire your land and property by right, where it is required for the public interest. These bodies could be the government, local councils, or utility companies, however some private companies can obtain legal powers to buy part or all of your property, if it is needed as part of a development project.

What are compulsory purchase powers used for?

  • Rail construction projects
  • Airport expansions
  • Town centre regeneration
  • Housing developments
  • Housing regeneration projects
  • Electricity power plans
  • Water, sewer, gas pipeline schemes

It is best to plan in advance as once the process reached its final stage with service of
Notice, you will have to sell or move even if you don’t want to.

Compensation generally has to be paid to you for the property, land or rights taken from you.

Compulsory Purchase Compensation

Generally originated from the 19 th Century and based on a range of Acts of Parliament from 1845 to 2004. It is also based on a large body of case-law. There are several highly complex provisions, however, the basic principle to remember is “Equivalence”. This is where the property owner/occupiers should be put in no better and no worse position financially than they would have been, if the interest had not been acquired.


How much Compensation will I get?

The amount of compensation you receive would depend on the type of land and property, residential, commercial, religious, the going concern, use, and whether land, amongst other factors.

Depending on the case your heads of your claim could include:

  • Land/property Taken: Market value ignoring the scheme
  • Disturbance: Costs associated with relocating homes and businesses
  • Loss of Profits: For businesses both temporary and permanent
  • Extinguishment: Permanent closure of business
  • Severance: Compensation for splitting a property in two
  • Injurious Affection: Compensation to land not taken in the same ownership.

If you have received a letter from an Acquiring Authority about acquiring your home or residential property before obtaining powers, then do get in touch with us.

Apart from the value of your home, there are additional costs you may be entitled to, such as loss payments, interest, tax, legal and surveyor’s fees, amongst others.


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