Planning and Compulsory Purchase Bill

House of Lords

Session 2003 - 04
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Other Bills before Parliament

Planning and Compulsory Purchase Bill

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100
Confirmation by acquiring authority
(1)
The Acquisition of Land Act 1981 (c. 67) (the “1981 Act”) is amended as follows.
(2)
After section 14 there is inserted—
“14A
Confirmation by acquiring authority
(1)
The power to confirm an order may be exercised by the acquiring
5
authority (instead of the confirming authority) if—
(a)
the confirming authority has notified the acquiring authority to
that effect, and
(b)
the notice has not been revoked.
(2)
But this section does not apply to an order in respect of land—
10
(a)
falling within section 16(1) or paragraph 3(1) of Schedule 3, or
(b)
forming part of a common, open space or fuel or field garden
allotment for the purposes of section 19.
(3)
The confirming authority may give notice under subsection (1) if it is
satisfied—
15
(a)
that the notice requirements have been complied with,
(b)
that no objection has been made in relation to the proposed
confirmation or that all objections have been withdrawn, and
(c)
that the order is capable of being confirmed without
modification.
20
(4)
An objection is an objection made by any person (whether or not a
person mentioned in section 12(2)), including an objection which is
disregarded.
(5)
The power to confirm an order under subsection (1) does not include
any power—
25
(a)
to confirm the order with modifications, or
(b)
to confirm only a part of the order.
(6)
The acquiring authority must notify the confirming authority as soon
as reasonably practicable after it has determined whether or not to
confirm the order.
30
(7)
The confirming authority may revoke a notice given by it under
subsection (1).
(8)
But a notice may not be revoked if the determination has already been
made and notified by the acquiring authority under subsection (6).
(9)
An order confirmed by the acquiring authority under subsection (1) is
35
to have the same effect as if it were confirmed by the confirming
authority.
(10)
Notices under this section must be in writing.
(11)
Notice requirements and disregarded must be construed in accordance
with section 13.”
40
(3)
The amendments made by this section do not apply to orders of which notice
has been published under section 11 of the 1981 Act before commencement of
this section.

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Valuation date
101
Assessment of compensation: valuation date
(1)
The Land Compensation Act 1961 (c. 33) is amended as follows.
(2)
After section 5 there is inserted—
“5A
Relevant valuation date
5
(1)
If the value of land is to be assessed in accordance with rule (2) in
section 5, the valuation must be made as at the relevant valuation date.
(2)
No adjustment is to be made to the valuation in respect of anything
which happens after the relevant valuation date.
(3)
If the land is the subject of a notice to treat, the relevant valuation date
10
is the earlier of—
(a)
the date when the acquiring authority enters on and takes
possession of the land, and
(b)
the date when the assessment is made.
(4)
If the land is the subject of a general vesting declaration, the relevant
15
valuation date is the earlier of—
(a)
the vesting date, and
(b)
the date when the assessment is made,

and “general vesting declaration” and “vesting date” have the
meanings given in section 2 of the Compulsory Purchase (Vesting
20
Declarations) Act 1981.
(5)
If the acquiring authority enters on and takes possession of part of the
land—
(a)
specified in a notice of entry, or
(b)
in respect of which a payment into court has been made,
25

the authority is deemed, for the purposes of subsection (3)(a), to have
entered on and taken possession of the whole of that land on that date.
(6)
Subsection (5) also applies for the purposes of calculating interest
under the following enactments—
(a)
section 11(1) of the Compulsory Purchase Act 1965;
30
(b)
paragraph 3 of Schedule 3 to that Act;
(c)
section 85 of the Lands Clauses Consolidation Act 1845;
(d)
section 52A of the Land Compensation Act 1973,

and references there to the date or time of entry are to be construed
accordingly.
35
(7)
An assessment by the Lands Tribunal is treated as being made on the
date certified by the Tribunal as—
(a)
the last hearing date before it makes its determination, or
(b)
in a case to be determined without an oral hearing, the last date
for making written submissions before it makes its
40
determination.
(8)
Nothing in this section affects—

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(a)
any express provision in any other enactment which requires
the valuation of land subject to compulsory acquisition to be
made at a particular date;
(b)
the valuation of land for purposes other than the compulsory
acquisition of that land (even if the valuation is to be made in
5
accordance with the rules in section 5).
(9)
In this section—
(a)
a notice of entry is a notice under section 11(1) of the
Compulsory Purchase Act 1965;
(b)
a payment into court is a payment into court under Schedule 3
10
to that Act or under section 85 of the Lands Clauses
Consolidation Act 1845.”
Advance payments
102
Compensation: advance payments to mortgagees
(1)
The Land Compensation Act 1973 is amended as follows.
15
(2)
In section 52 (right to advance payment of compensation)—
(a)
after subsection (1) there are inserted the following subsections—
“(1A)
If the acquiring authority have taken possession of part of the
land—
(a)
specified in a notice of entry, or
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(b)
in respect of which a payment into court has been made,

the compensation mentioned in subsection (1) is the
compensation payable for the compulsory acquisition of the
interest in the whole of the land.
(1B)
Notice of entry and payment into court must be construed in
25
accordance with section 5A of the Land Compensation Act
1961.”,
(b)
for subsection (6) there is substituted the following subsection—
“(6)
If the land is subject to a mortgage sections 52ZA and 52ZB
apply.”
30
(3)
After section 52 of that Act there are inserted the following sections—
“52ZA  Advance payments: land subject to mortgage
(1)
This section applies if—
(a)
an acquiring authority take possession of land,
(b)
a request is made in accordance with section 52(2) for an
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advance payment, and
(c)
the land is subject to a mortgage the principal of which does not
exceed 90 per cent of the relevant amount.
(2)
The advance payment made to the claimant must be reduced by the
amount the acquiring authority think will be required by them to
40
secure the release of the interest of the mortgagee (or all the mortgagees
if there is more than one).

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(3)
The acquiring authority must pay to the mortgagee the amount the
acquiring authority think will be required by them to secure the release
of the mortgagee’s interest, if—
(a)
the claimant so requests, and
(b)
the mortgagee consents to the making of the payment.
5
(4)
If there is more than one mortgagee—
(a)
subsection (3) applies to each mortgagee individually, but
(b)
payment must not be made to a mortgagee before the interest of
each mortgagee whose interest has priority to his interest is
released.
10
(5)
The amount of the advance payment made to the claimant under
section 52 and the amount of the payments made to mortgagees under
this section must not in aggregate exceed 90 per cent of the relevant
amount.
(6)
Subsection (7) applies if—
15
(a)
the acquiring authority estimated the compensation,
(b)
it appears to the acquiring authority that their estimate was too
low and they revise the estimate, and
(c)
a request is made by the claimant in accordance with section
52(2).
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(7)
The provisions of subsections (2) to (5) must be re-applied on the basis
of the revised estimate.
52ZB  Advance payments: land subject to mortgage exceeding 90%
threshold
(1)
This section applies if—
25
(a)
an acquiring authority take possession of land,
(b)
a request is made in accordance with section 52(2) for an
advance payment, and
(c)
the land is subject to a mortgage the principal of which exceeds
90 per cent of the relevant amount.
30
(2)
No advance payment is to be made to the claimant.
(3)
But the acquiring authority must pay to the mortgagee the amount
found under subsection (4), if—
(a)
the claimant so requests; and
(b)
the mortgagee consents to the making of the payment.
35
(4)
The amount is whichever is the lesser of—
(a)
90% of the value of the land;
(b)
the principal of the mortgagee’s mortgage.
(5)
The value of the land is the value—
(a)
agreed by the claimant and the acquiring authority, or (failing
40
such agreement)
(b)
estimated by the acquiring authority.
(6)
For the purposes of subsection (5) the value of the land is to be
calculated in accordance with rule 2 of section 5 of the Land
Compensation Act 1961 (market value), whether or not compensation
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is or is likely to be assessed in due course in accordance with rule 5 of
that section (equivalent re-instatement).
(7)
If there is more than one mortgagee, payment must not be made to a
mortgagee until the interest of each mortgagee whose interest has
priority to his interest is released.
5
(8)
But the total payments under subsection (3) must not in any event
exceed 90% of the value of the land.
(9)
Subsection (10) applies if—
(a)
the acquiring authority estimated the compensation,
(b)
it appears to the acquiring authority that their estimate was too
10
low and they revise the estimate,
(c)
the condition in section 52ZA(1)(b) would have been satisfied if
the revised estimate had been used instead of their estimate,
and
(d)
a request is made by the claimant in accordance with section
15
52(2).
(10)
The provisions of section 52ZA(2) to (5) must be applied on the basis of
the revised estimate.
(11)
If—
(a)
the acquiring authority estimated the value of the land,
20
(b)
it appears to the acquiring authority that their estimate was too
low and they revise the estimate, and
(c)
a request is made by the claimant in writing,

any balance found to be due to a mortgagee on the basis of the revised
estimate is payable in accordance with this section.
25
52ZC  Land subject to mortgage: supplementary
(1)
This section applies for the purposes of sections 52ZA and 52ZB.
(2)
The claimant must provide the acquiring authority with such
information as they may require to enable them to give effect to those
sections.
30
(3)
A request under section 52ZA(3) or 52ZB(3) must be made in writing
and must be accompanied by the written consent of the mortgagee.
(4)
Subsections (4) and (8) to (9) of section 52 apply to a payment which
may be or is made under section 52ZA or 52ZB as they apply to a
payment which may be or is made under section 52.
35
(5)
The relevant amount is the amount of the compensation agreed or
estimated as mentioned in section 52(3).
(6)
If the land is subject to more than one mortgage, the reference in
sections 52ZA(1)(c) and 52ZB(1)(c) to the principal is to the aggregate of
the principals of all of the mortgagees.
40
(7)
A payment made to a mortgagee under section 52ZA or 52ZB—
(a)
must be applied by the mortgagee in or towards the discharge
of the principal, interest and costs and any other money due
under the mortgage;

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(b)
must be taken to be a payment on account of compensation and
treated for the purposes of section 52(10) as if it were an advance
payment made under section 52;
(c)
must be taken, with effect from the date of the payment, to
reduce by the amount of the payment the amount in respect of
5
which interest accrues for the purposes of section 11(1) of the
Compulsory Purchase Act 1965, any bond under Schedule 3 to
that Act or section 85 of the Lands Clauses Compensation Act
1845;
(d)
must be taken into account for the purposes of determining any
10
payments (or payments into court) which may be made for the
purposes of sections 14 to 16 of the Compulsory Purchase Act
1965.
(8)
If the amount, or aggregate amount, of any payments under—
(a)
sections 52 and 52ZA, or
15
(b)
section 52ZB,

on the basis of the acquiring authority’s estimate of the compensation
exceed the compensation as finally determined or agreed, the excess
must be repaid by the claimant.
(9)
No payment must be made to a mortgagee—
20
(a)
if any of the circumstances mentioned in subsection (10)
applies, or
(b)
if the compulsory acquisition is only of a right over land.
(10)
The circumstances are—
(a)
payment has been made under section 14(2) of the Compulsory
25
Purchase Act 1965;
(b)
a notice under section 14(3) of that Act has been given;
(c)
there is an agreement under section 15(1) or 16(1) of that Act or
the matter has been referred to the Lands Tribunal under that
section.
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(11)
The claimant in relation to settled land for the purposes of the Settled
Land Act 1925 is the persons entitled to give a discharge for capital
money.”
(4)
In section 52A (right to interest where advance payment made) for subsection
(2) there is substituted—
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“(2)
If the authority make a payment under section 52(1) to any person on
account of the compensation—
(a)
they must at the same time make a payment to that person of
accrued interest, for the period beginning with the date of entry,
on the amount of the compensation agreed or estimated under
40
section 52(3) (the total amount), and
(b)
the difference between the paid amount and the total amount is
an unpaid balance for the purposes of this section.
(2A)
The paid amount is—
(a)
the amount of the payment under section 52(1), or
45
(b)
if the land is subject to a mortgage, the aggregate of that amount
and the amount of any payment made under section 52ZA(3).”