Re a notice of reference by Lichfield District Council

Where unregistered land needed for a proposed development is likely to be subject to a strong adverse-possession claim by the adjoining development owner, its unknown owner cannot extract ransom or marriage value. The land should instead be valued at its open-market value on the appropriate assumption, having regard to its independent characteristics and comparable amenity-land sales.

Additional compensation for professional fees or a basic loss payment requires a written claim. In the absence of a claim, the Tribunal cannot award those sums.

The acquiring authority compulsorily acquired a 346 sq m strip of unregistered grassland. The owner could not be traced. The land adjoined a former public-house site for which the adjoining owner had planning consent for residential redevelopment.

An initial valuation had proceeded on assumptions inconsistent with the access arrangements and planning consent. The Tribunal directed that legal advice be obtained and a fresh valuation prepared. The advice indicated that the adjoining owner had a strong potential adverse-possession claim and likely, though limited, prescriptive rights. The central issue was the compensation properly payable into court for the acquired freehold interest.

1. Compensation was determined at £4,150, to be paid into court. The Tribunal accepted the expert valuation as fairly reflecting the property’s open-market value at the valuation date.

2. The assumption that no ransom value could be extracted was appropriate. Legal advice indicated that the owner of the adjoining development site would have a strong claim to adverse possession of the acquired land. That prospect removed the basis for ransom or marriage value.

3. The land had no independent development potential. It was properly valued as amenity land. The adopted rate of £12 per sq m appropriately reflected its size, quality and topography when assessed against the comparable sales evidence.

4. Potential claims for professional fees and a 7.5% basic loss payment were not awarded. Such claims had to be made in writing to the acquiring authority within six years of the valuation date. Without a claim, the Tribunal had no power to make an award; payment into court of those sums was for the acquiring authority’s discretion.

This was a first-instance determination on a notice of reference. The reference was received under section 5 and Schedule 2 to the Compulsory Purchase Act 1975 and section 8 of the Compulsory Purchase (Vesting Declarations) Act 1981.