QUESTION
The Council are negotiating with me to compulsorily purchase my home. I have agreed the price with them but understand that I may also be able to claim an additional payment for the inconvenience of having to move?
ANSWER
You are quite right. Under the Land Compensation Act 1973 compensation is payable to a person who is the owner and occupier of a dwelling who is displaced by a compulsory purchase order. The amount of compensation is calculated as a percentage of the market value of the property, subject to a maximum and minimum amount.
Under new Government Regulations these maximum and minimum amounts are to be increased in as from 1 st September 2006 as follows :
· The maximum home loss payment is increased from £38,000 to £40,000.
· The minimum home loss payment is increased from £3,800 to £4,000.
The increases have been calculated by reference to house price index and therefore reflect house price inflation. Depending upon the value of your property, therefore, it may therefore be in your interests to delay settling your claim as you may be entitled to additional compensation after 1 st September 2006.
Should you have any further queries please do not hesitate to contact Keith Swan on 0808 231 7043.
