menu close menu

Compensation

Budgeting, Valuation, Compensation Scheme and Compensation Budgeting
scale

Budgeting is a key priority for both acquirers and claimants and Whitecroft will provide its estimate at an early stage and update it as new information becomes available which affects the amount of the claim. Scheme changes or new information on or from the claimant / business or a change in their circumstances can obviously affect budgets. The more complete information available at an early stage gives the most accurate estimate.


It is down to claimants to make their claim on whatever basis they choose. Whitecroft will evaluate the losses on the several different bases available and make a recommendation on how to present this based on the merits of each. Once this is agreed and Whitecroft so instructed then we will prepare and submit the claim with supporting justification and proceed to defend it against any challenges that the acquiring authority may raise until eventually an acceptable settlement is agreed.


Property Valuation
The property valuation is clearly an important aspect of any claim. Whitecroft will investigate the property title whether freehold or leasehold or some other interest and take all factors into account in the valuation. Leasehold interests with limited time remaining can have more value than it at first appears.


The legislation provides that any rise or decrease in property value due to the scheme must be disregarded. This can give rise to some complex valuation assumptions needing to be considered and accounted for in, what could be described as a forensic valuation. Sometimes property values can go up rapidly due to the prospect of redevelopment and regeneration and acquirers will seek to disregard this and keep the valuation low. Where this happens Whitecroft has all the skills and experience to demonstrate that most of this uplift would have been due to the claimant with or without the scheme thereby securing the best terms.


The more likely scenario however is that an area has been severely rundown by years of blight due to the uncertainty of the scheme. Acquirers like to think that this is the reason for the compulsory purchase but the reality is that such diminished values need to be disregarded as well and Whitecroft has all the skills and experience to find and present the evidence of the cause to prevent the claimant suffering an unnecessary loss.


Other Compensation – Disturbance
Removal costs, connection charges, postal redirection and reasonable professional fees (including Whitecroft’s) are most usually reimbursed at cost as, subject to conditions, are the costs of reinvestment (new property valuation and mortgage and lawyers fees etc). Whitecroft can greatly assist on the other heads of claim such as:

Residential


scale

• Claimant / owners time
• Specialist adaptations – i.e. handrails ramps accessible bathrooms
• Fitting costs for i.e. carpets/ curtains other furnishings
• Compensation for furniture that does not fit the new house
• Reasonable fees for professional advice and negotiation
• Homeloss payment

Investment Owners


scale

• Possible treatment of entire loss on loss of profits basis
• Claimant / owners time in certain circumstances
• Reinvestment costs (subject to criteria in some circumstances)
• Potentially temporary loss of profits from voids and dispossessed period
• Pre-acquisition losses in the shadow scheme (based on loss of profits)
• Reasonable fees for professional advice and negotiation
• Property owners basic loss payment

Commercial - Extinguishment


scale

• Claimant / owners time in dealing with CPO and winding up the business
• Net profits goodwill calculation to establish business valuation
• Pre-acquisition losses in the shadow scheme (based on loss of profits)
• Forced sale loss on sale of plant machinery and equipment and stock
• In certain circumstances certain additional taxes can be recovered
• Reasonable fees for professional advice and negotiation
• Property owners and or business owner’s basic loss payment

Commercial - Relocation


scale

• Claimant / owners time in certain circumstances
• Costs of running two premises during the move period
• Costs of buying and running two sets of plant during the move period
• Other additional running costs
• Plant and machinery specialist moving and setup costs
• Specialist adaptations to new premises in certain circumstances
• Temporary loss of profits during the move and up to full re-establishment
• Pre-acquisition losses in the shadow scheme (based on loss of profits)
• Any permanent loss of profits or increased overheads (in certain circumstances)
• Reasonable fees for professional advice and negotiation
• Property owners and or Business owner’s basic loss payment
• NB Betterment may arise and acquiring authorities seek to deduct this from the overall claim but this can be mitigated by negotiation

Agricultural


scale

• Forensic valuation to establish, for instance, hope value
• Claimant / owners time
• Mitigation measures /cost, for instance, crossings / water troughs/ gates / fences replacement land
• Other additional running costs/ increased overheads
• Specialist adaptations to new premises in certain circumstances
• Crop loss permanent and temporary and or temporary loss of profits during the move and up to full re-establishment
• Any permanent loss of profits or increased overheads (in certain circumstances)
• Injurious affection or material detriment
• Reasonable fees for professional advice and negotiation
• Farm basic loss payment where land physically taken