East Cheshire Council, Re Heawood Hall Cottage, Court of Appeal - Lands Tribunal, January 14, 2011, [2011] UKUT 18 (LC)

Resolution Date:January 14, 2011
Issuing Organization:Lands Tribunal
Actores:East Cheshire Council, Re Heawood Hall Cottage
 
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UT Neutral citation number: [2011] UKUT 18 (LC)

ACQ/420/2009

TRIBUNALS, COURTS AND ENFORCEMENT ACT 2007

COMPENSATION - compulsory purchase - value of land taken - severance and injurious affection - valuation - comparables - disturbance - Land Compensation Act 1961 section 5, rules (2) and (6); Compulsory Purchase Act 1965 section 7 - compensation determined at £544,400

IN THE MATTER of a NOTICE OF REFERENCE

BETWEEN LEDBURN PROPERTIES LIMITED Claimant

and

EAST CHESHIRE COUNCIL Acquiring

Authority

Re: Heawood Hall Cottage, Nether Alderley,

Cheshire SK10 4TN

Before: P R Francis FRICS

Sitting at: Manchester Civil Justice Centre,

Bridge Street, Manchester

on

7 December 2010

Andrew Piatt, solicitor, of HBJ Gately Wareing for the claimant

Martin Carter, instructed by East Cheshire Council, Legal Services, for the acquiring authority

DECISION

Introduction

  1. This is a decision to determine the compensation payable by East Cheshire Council (the council or the acquiring authority) to Ledburn Properties Limited (the claimant) in respect of the compulsory acquisition of 0.77 acre land, together with severance and injurious affection to retained land and disturbance at Heawood Hall Cottage, Nether Alderley, Cheshire (the subject property) under the Cheshire County Council (A34 Alderley Edge and Nether Alderley Bypass) Compulsory Purchase Order 2004 (the CPO).

  2. The claim in respect of the land taken has been agreed at £15,400, based upon a value of £20,000 per acre. The claimant seeks £800,000 in respect of injurious affection, on the basis of the estimated value of the property being reduced from £1,450,000 prior to the construction of the bypass to £650,000 post construction. The acquiring authority values that aspect of the claim at £375,000 being a reduction from £1,250,000 to £875,000. During the course of the hearing the disturbance claim for £4,000 relating to director's time expended in connection with the reference was agreed, but a claim for £254,360 relating to extra mortgage payments incurred to the claimant's alleged inability to sell the property during the construction period remained to be resolved.

  3. Mr Andrew Piatt, a solicitor with HBJ Gately Wareing appeared for the claimant and called Mr James Michael Norris Ogborn BA(Hons) Dip LE MRICS, a director of Lambert Smith Hampton, Commercial Property Consultants of Manchester, who gave expert valuation evidence. Mr Martin Carter of counsel appeared for the acquiring authority whose expert valuation evidence was given by Mr Steven John Plack MRICS, a Senior Valuer with the council.

  4. I carried out an accompanied inspection of the subject property and an external inspection of the four agreed comparables on 6 December 2010.

    Facts

  5. The parties produced a brief statement of agreed facts and issues from which, together with the evidence and my inspections I find the following facts. The subject property comprises a detached part two-storey and part single-storey private residential dwelling-house built in 1977 with an attached cottage which has been incorporated into a self-contained annexe, located in a semi-rural position about half a mile south of Nether Alderley. It forms part of Heawood Hall which is a substantial country mansion that has been divided and, with the conversion of barns and other outbuildings, now forms an enclave containing a total of 11 residential units. The hall was, prior to the construction of the new bypass, approached off an approximately 500 metre shared private drive off Congleton Road.

  6. The property, which is constructed of brick under tiled roofs and has timber framed, leaded light windows, is set within private front, side and rear gardens and has an adjacent paddock. The main house has been modernised and improved in the last 3 years, but works to the annexe are ongoing. The principal accommodation briefly comprises porch, hall and inner hall, cloakroom, three good sized reception rooms, kitchen/breakfast room and utility room to ground floor, with a galleried landing, master suite comprising bedroom, dressing room and bathroom, together with two further bedrooms and a family bathroom at first floor. The annexe (which is accessed from the main house at both ground and first floors), contains a living room/kitchen area and utility room at ground floor with a bedroom and bathroom above and stairs to a galleried upper bedroom in the roof space. There are separate propane gas heating systems serving the main house and annexe. There is a detached double garage, a further single garage and a garden store. The whole property extended to some 2.36 acres prior to the compulsory acquisition of 0.77 acres from the paddock (including a detached farm building which is to be re-erected elsewhere on the claimant's land at the council's expense).

  7. The claimant acquired the property, which was then in need of general modernisation and refurbishment, at public auction in August 2007 for £1,230,000. When purchased, the main house was vacant, but the annexe was subject to a residential tenancy for a term of 5 years from 1 February 2005. The tenant had, however, vacated by the date of valuation.

  8. The CPO which was required to facilitate the construction of a new bypass around Nether Alderley and Alderley Edge, was made on 21 June 2004 and confirmed by the Secretary of State on 15 March 2007. Notice to Treat and Notice of Entry were served on 30 July 2008 and the date of entry on the land, which is also the valuation date for the purposes of this reference, was 3 September 2008. In addition to the acquisition of part of the claimant's own property, the council acquired rights of access over the shared communal entrance road which was re-routed to join with the new roundabout at the southern entrance of the bypass. The bypass, which was opened to vehicular traffic about one week before my visit, runs in a north-south direction about 150 metres to the east of the subject property and there is a painted steel and concrete footbridge over it on raised banks. This links a public footpath which runs between the private gardens and paddock of Heaton Hall Cottage with land between it and the Congleton Road.

    Issues

  9. The issues remaining to be determined are:

  10. Diminution in value to the retained land caused by the scheme.

  11. Whether or not the claimant is entitled to claim, as disturbance, mortgage payments said to have been incurred solely as a result of being unable to sell the property during the scheme works.

    Claimant's case

  12. Mr Ogborn qualified in 1994 and specialises in compulsory purchase and compensation work...

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