Compulsory Purchase Case Studies

Sanderson Weatherall prides itself on providing an in-house multi-skill team capable of advising both claimants and acquiring authorities on all aspects of strategy and compensation arising from the use of compulsory purchase powers.

A small sample of cases which Sanderson Weatherall have advised on are set out below and can be navigated using the buttons on the left hand side of this page.

If there is not a case study comparable to your situation we almost certainly have experience of dealing with it. 

Please call us on 0191 269 0115.

Healthcare

Type of Business: NHS Dental Practice

Region: London - Peckham

Acting for: Claimant

Issue: Dental practice serving several thousand patients required relocation to make way for refurbishment of tube station. 

Outcome: Agreed basis of compensation as relocation. Identified appropriate alternative leasehold premises and agreed lease terms. Prepared valuation of existing premises and agreed settlement. Worked in conjunction with the Claimant’s specialist contractors with regard to the fit-out of the new premises. Prepared and negotiated claim having regard to quantum and betterment. Settled claim.

SW Services Used:

  • SW Compulsory Purchase Order team – agree basis of claim and compensation.
  • SW Retail Agency – Implement search for relocation premises. Agree terms for relocation of premises.
  • SW Valuation – Valuation of long leasehold interest of existing premises.

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Type of Business: Private Dental Practice

Region: North East

Acting for: Acquiring Authority

Issue: Purpose built dental practice to be demolished to make way for road bridge.

Outcome: Agreed basis of claim as extinguishment due to age of Directors. Received claim and negotiated settlement with regard to the value of goodwill. Agreed transfer of patients to alternative practice and in so doing reduce closing down costs.

SW Services Used:

  • SW Compulsory Purchase Order team – advise on basis and quantum of claim.
  • SW Plant and Machinery – Advise with regard to disposal of specialist fixtures and fittings.

Retail

Type of Business: Bike Shop

Region: East Yorkshire

Acting for: Claimant

Issue: A freehold bike shop with residential flat above required for a road widening scheme.

Outcome: Determined strategy to relocate business in isolation into leasehold shop. Agreed value of freehold property and use compensation to acquire freehold family residence. Relocated business maintaining continuity of trade. Prepared and negotiated compensation claim for business disturbance.

SW Services Used: 

  • SW Compulsory Purchase Order team – advise and implement strategy, prepare and settle the claim.
  • SW Retail Agency – identify and secure appropriate alternative premises.
  • SW Building Surveying – prepare acquisition surveys in respect of relocation premises.

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Type of Business: Bakers Shop

Region: East London

Acting for: Claimant

Issue: Freehold bakers shop in unique location at the entrance to a tube station to be demolished to allow expansion of the station.

Outcome: Strategic review of business concluded that the Plc claimant was entitled to compensation based on extinguishment, due to sensitivity of location. Preparation and negotiation of compensation claim including value of goodwill, value of freehold premises and closing down costs.

SW Services Used: 

  • SW Compulsory Purchase Order team – appraisal of business and goodwill, preparation and negotiation of claim.
  • SW Retail Valuation Team – valuation and negotiation of the freehold value of the premises.

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Type of Business: Bike Shop

Region: North East

Acting for: Acquiring Authority

Issue: Premises required for town centre regeneration and provision of food store.

Outcome: SW appraised and responded to the compensation claim, agreed the basis of compensation as extinguishment, agreed strategy for closure of business and disposal of stock and agreed compensation package.

SW Services Used:

  • SW ComPulsory Purchase Order team – advise Acquiring Authority on basis of claim and quantification of equivalence.
  • SW Plant and Machinery – Agreed claim for loss on forced sale of stock and arranged internet auction.
  • SW Property Management – secured property upon possession and undertook facilities management until demolition.

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Type of Business: Retail Bakery

Region: South London

Acting for: Claimant

Issue: Bakery shop to be demolished to facilitate housing scheme.

Outcome: Plc claimant wished to retain branch in location. Continuity of trade could not be maintained due to lack of premises to relocate so SW advised strategy of temporary closure and relocation. Compensation claim comprising, closure cost of branch, temporary loss of profit, cost of establishing replacement branch and loss of profit during start up.

SW Services Used:

  • SW CPO team – strategic advice with regard to response to CPO, quantification of compensation, preparation of claim.

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Type of Business: Jewellers and Pawnbrokers

Region: South Yorkshire

Acting for: Claimant

Issue: Loss of leasehold jewellers and pawnbrokers to be demolished to make way for city centre regeneration.

Outcome: A relocation premises was identified and acquired for the claimant. The business was relocated achieving continuity of trade. A compensation claim was prepared, negotiated and agreed having regard to the secure and high quality fit-out required by the claimant.

SW Services Used:

  • SW Compulsory Purchase Order team – preparation and negotiation of claim.
  • SW Agency – site search and negotiation of leasehold terms for relocation premises.
  • SW Building Surveying – structural survey of relocation premises and advice with regard to fit out of relocation premises.
  • SW Business Rates – mitigation of business rates during the fit out of the relocation premises.

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Type of Business: Haberdashery, Gaming and residential accommodation

Region: West Midlands

Acting for: Claimant

Issue: Freehold, mid terraced, retail unit with proprietor’s residential accommodation compulsorily acquired to facilitate regeneration and construction of superstore.

Outcome: SW CPO Team advised that the claimant qualified for business extinguishment due to age. Residential accommodation attracted home loss payment. Claim prepared and negotiated based on valuation of freehold property, goodwill and loss on forced sale stock and loss of home.

SW Services Used:

  • SW CPO team – identified basis of claim and settle claim.
  • SW Plant and Machinery – conduct web auction for disposal of stock.
  • SW Valuation Team – prepare capital value of building.

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Type of Business: Fishmongers

Region: East Yorkshire

Acting for: Claimant

Issue: Leasehold premises used as wet fish preparation facility and retail outlet to be demolished to make way for a road widening scheme.

Outcome: Analysis of the business revealed sensitivity of location and vertical integration which could not be achieved by relocation. Principle of extinguishment agreed with Acquiring Authority. Compensation claimed on the basis of loss of business and closing down costs. Compensation agreed and business closed to coincide with seasonal fluctuation in trade minimising loss of seasonal employment.

SW Services Used:

  • SW CPO team – analysis of business and valuation and agreement of goodwill.

Distribution

Type of Business: Motor Factory

Region: Midlands

Acting for: Claimant

Issue: Mail order classic car part distribution business to be demolished to make way for the Commonwealth Games 2022.

Outcome: Business relocated with continuity of trade following preparation, negotiation and settlement of compensation claim including the freehold value of the building and business disturbance.

SW Services Used:

  • SW Compulsory Purchase Order team – strategic advice, preparation and negotiation of claim.
  • SW Valuation team – agreement of market value of the warehouse.
  • SW Agency – identification of suitable relocation premises, negotiation of terms and acquisition.
  • SW Architecture and Building Surveying – survey and space planning of relocation premises.
  • SW Plant and Machinery – advice with regard to value and disposal of workshop chattels and racking.

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Type of Business: Builders Merchant

Region: South East

Acting for: Claimant

Issue: Builders Merchant’s branch required for the provision of business park and approach to East Cost Railway Station.

Outcome: Blaimant lodged objection to scheme. SW instructed to prepare expert evidence in support of objection and attend a Public Inquiry in the role of Surveyor Advocate. Prepare and present evidence resulting in powers of compulsory acquisition being denied.

SW Services Used:

  • SW COMPULSORY PURCHASE ORDER TEAM – acting as an expert and advocate in challenging viability and deliverability of the scheme.

Scrapyards

Type of Business: Scrapyard

Region: North East

Acting for: Acquiring Authority

Issue: Corner of the site required for strategic transport corridor.

Outcome: Negotiation with Claimants agents to identify optimum design and timing of works. Received 3 site reorganisation options. Agree revised layout, schedule and costing of accommodation works. Received claim and agreed stage payments.

SW Services Used:

  • SW Compulsory purchase order Team – strategy and claim appraisal.
  • SW Building Surveying – advice with regard to accommodation works, costings and tendering.

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Licensed Premises

Type of Business: Social Club

Region: North East

Acting for: Acquiring Authority

Issue: Acquire non-trading social club to facilitate town centre regeneration.

Outcome: Received compensation claim from claimants’ agents, appraised and negotiated settlement for freehold intertest in premises and agreed compensation package.

SW Services Used:

  • SW Compulsory Purchase Order Team – strategy and advice with regard to Public Inquiry.
  • SW Licence and Leisure Valuation Team – appraisal and agreement of compensation.

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Type of Business: Public House

Region: North East

Acting for: Acquiring Authority

Issue: Two public houses included within master plan area for housing regeneration scheme.

Outcome: Contacted claimants and opened negotiations following business review. Agreed proposed compensation package with Acquiring Authority and made offer to claimants.

SW Services Used:

  • SW Compulsory Purchase Order Team – strategy and statement of case.
  • SW Licence and Leisure Valuers – appraisal of trading entity and compensation package.

Manufacturing

Type of Business: Bakery

Region: Royal Park, London

Acting for: Claimant

Issue: Bakery supplying supermarket contracts required relocation with continuity of trade due to demolition for HS2.

Outcome: Agree basis of compensation, prepare compensation claim based on relocation cost and maintaining continuity of trade. Negotiate settlement of compensation in the form of cash payment.

SW Services Used:

  • SW Compulsory Purchase Order Team – writing claim, negotiation settlement.
  • SW Building Surveying – costing advice with regard to fit out of relocation premises.

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Education

Type of Business: Special School

Region: West Midlands

Acting for: Claimant

Issue: The school lies in the path of HS2. The impact of construction necessitated the relocation of the school.

Outcome: SW project managed the relocation including agreeing financial terms for the relocation premises, listed building and planning consent, design and delivery of accommodation works and negotiation of the accommodation package.

SW Services Used:

  • SW Compulsory Purchase Order Team – agree strategy and project manage the CPO process.
  • SW Town Planners – obtain planning permission and listed building consent, consent of relocation premises.
  • SW Building Surveying – design and project manage accommodation works.

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Minerals

Type of Business: Cement and Concrete Plant

Region: North East

Acting for: Claimant

Issue: Substantial fixed plant with significant stockpiles included within draft Compulsory Purchase Order. Inclusion gave rise to serious impact on Plc claimants vertical integration and business operation.

Outcome: SW prepared report for the purpose of lobbying the Acquiring Authority and Public Inquiry demonstrating that the inclusion of the plant would fundamentally undermine the case for the award of compulsory purchase powers with impact on the funding and delivery of the scheme. Order boundary re-drawn excluding plant and stockpiles removing claimant’s property from the Order.

SW Services Used:

  • SW Compulsory Purchase Order – strategic advice on objecting to the Order and lobbying.
  • SW Plant and Machinery – guidance on cost of providing replacement mill.

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Type of Business: Concrete Batching Plant

Region: North East

Acting for: Acquiring Authority

Issue: Demolition of concrete batching plant required to allow construction of urban relief road.

Outcome: Acquiring authority identified and secured relocation site for Claimant. SW agreed value of site. Claimants basis of quantification of compensation challenged and overturned. Revised compensation claim received and agreed to achieve equivalence having regard to deductions for capacity and operating costs of the new plant.

SW Services Used:

  • SW Compulsory Purchase Order – advise the Acquiring Authority on basis and quantum of claim.
  • SW Plant and Machinery – provide the specialist valuation with regard to the existing installation and disposal of second-hand plant.
  • SW Building Surveying – appraised claim for accommodation works and costings.

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Type of Business: Special Categories Tipping

Region: North East

Acting for: Claimant

Issue: Clients right of access to tipping site threatened by inclusion in draft Compulsory Purchase Order.

Outcome: Lodged protective objection to the draft Compulsory Purchase Order. Negotiated agreement document reserving the rights of access from the adopted highway to the tipping site and rights to compensation arising from business disturbance.

SW Services Used:

  • SW CPO Team – advice with regard to strategy, objection and negotiation of Heads of Terms.

Motor Trade and Petrol Filling Stations

Type of Business: Second-hand Car Sales

Region: North East

Acting for: Claimant

Issue: Acting on behalf of leasehold second-hand motor dealership who suffered the loss of 30% of the external car display area due to Highways England trunk road improvement.

Outcome: Review of business viability following loss of sales pitch, concluded that the remaining premises were commercially unviable giving rise to extinguishment of the business. Preparation and negotiation of compensation claim for business extinguishment.

SW Services Used:

  • SW ComPulsory purchase Order team – strategy, preparation and negotiation of claim.
  • SW Plant and Machinery – calculation of loss of forced sale on car stock and workshop chattels.

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Type of Business: Franchise Motor Dealer and Petrol Filling Station

Region: North West

Acting for: Claimant

Issue: Franchise motor dealership, petrol filling station and convenience store operated by Plc. Access disrupted by the construction of a national infrastructure scheme.

Outcome: Preparation of business disturbance claim working in conjunction with Claimant’s in-house accounts team and site managers. Reference to Lands Chamber for determination. Negotiation with Acquiring Authority. Preparation of Statement of Case and Position Statement for mediation. Ongoing.

SW Services Used:

  • SW CPO team. Preparation of compensation claim, negotiation, expert evidence.

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Type of Business:  Petrol Filling Station

Region:  West Yorkshire

Acting for: Claimant

Issue: Highways Authority compulsory purchased a small area of non-operational land from a petrol filling station operator for road widening.

Outcome: Preparation and agreed compensation arising from the compulsory purchase of the land. Preparation of compensation claim arising from disruption of the business during the construction period. Monitoring of business performance post-construction to identify any permanent loss of profit. Ongoing.

SW Services Used:

  • SW CPO team – strategic advice to Claimant.

Services

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