Many property owners affected by the Crossrail scheme will welcome the recent case of BPP(Farringdon Road) Ltd v Crossrail which has given additional rights to those involved. The Farringdon Road case made it clear that those property owners who are required to relocate temporarily due to Crossrail work and wish to claim compensation will not need to wait until all events that give rise to liability have occurred.
In the normal course of events, property owners are entitled to compensation following the compulsory acquisition of land based on the principle of equivalence, which means that they should be no worse off and no better off in financial terms after the acquisition than they were before.
As the effects of the Compulsory Purchase Order (CPO) on the value of the property are ignored when assessing compensation, the land is valued on the basis of its open market value without any increase or decrease attributable to the Crossrail scheme. Roughly speaking the Heads of Claim fall into the following categories
- the value of the land taken
- severance and injurious depreciation (the depreciation in value of land you retain where part only of your land is acquired)
- surveyors/solicitors reasonable fees.
The Farringdon Road case means property owners will not need to wait until all events that give rise to liability have occurred since their right to compensation for loss by reason of temporary possession is prospective.
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.