Pepper (UK) Limited v Burnley Borough Council

Compensation of £20,000 is determined based on expert valuation evidence and agreement between parties, payable to the mortgagee in part satisfaction of the mortgage debt, with no basic loss payment awarded due to lack of written claim.

Parties: Claimant: Pepper (UK) Limited; Acquiring Authority: Burnley Borough Council; Interested Party: Miss Catherine Beech
Jurisdiction: England and Wales
Judgment Date: 27 October 2020
Procedural Posture: Compulsory Purchase Compensation Determination / Final Determination
Outcome: compensation determined and awarded
Legal Topics: Compensation, Mortgage Debt, Valuation, Negative Equity

Property Law Compulsory Acquisition Compensation Mortgage Debt Valuation Negative Equity

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Parties

Pepper (UK) Limited

Claimant

Burnley Borough Council

Acquiring Authority

Miss Catherine Beech

Interested Party

Procedural Posture

Compulsory Purchase Compensation Determination / Final Determination

Legal Issues

1 Determination of compensation payable to mortgagee following compulsory acquisition of property with negative equity
2 Entitlement to basic loss payment under Land Compensation Act 1973

Ratio Decidendi

Court Disposition

compensation determined and awarded

Orders

Compensation of £20,000 plus statutory interest from the date of valuation to be paid to Pepper (UK) Limited in part satisfaction of the mortgage debt.
No award of basic loss payment; interested party may make a claim in writing.