Key Facts
- •Compulsory purchase of 11 Kay Street, Padiham, Burnley.
- •Property subject to a mortgage held by Bank of Scotland PLC.
- •Mortgagor, Ms Plummer, did not participate in proceedings.
- •Property in disrepair; value significantly less than outstanding mortgage debt.
- •Parties agreed compensation of £35,000.
- •Tribunal determined the appropriate level of compensation under section 15 of the Compulsory Purchase Act 1965.
Legal Principles
Where a mortgaged property's value is less than the outstanding debt, and the mortgagor doesn't participate, the Tribunal determines compensation.
Compulsory Purchase Act 1965, section 15
The Tribunal must determine compensation even if the mortgagee and acquiring authority have reached an agreement, if the mortgagor is not involved.
Section 15(1), Compulsory Purchase Act 1965
Outcomes
Compensation of £35,000 awarded to Bank of Scotland PLC.
The Tribunal found the agreed compensation reflected market conditions, considering the property's condition and comparable sales. The mortgagor's non-participation triggered the Tribunal's jurisdiction under Section 15(1) of the Act.
Statutory interest payable from the vesting date (2 May 2023).
Confirmed by the authority in their response to the notice of claim.
Bank's reasonable costs of negotiating the compensation are also payable.
Confirmed by the authority in their response to the notice of claim.