Bank of Scotland PLC (Birmingham Midshires Division) v Burnley Borough Council

Bank of Scotland PLC (Birmingham Midshires Division) v Burnley Borough Council

The Tribunal determined that, in the absence of participation by the mortgagors, compensation of £45,000, supported by expert valuation evidence, is payable to the bank as mortgagee under section 15 of the Compulsory Purchase Act 1965, together with statutory interest and reasonable costs to be agreed between the parties.

Parties
Claimant: Bank of Scotland PLC (Birmingham Midshires Division); Acquiring Authority: Burnley Borough Council; Borrower: Patrick James McAleenan; Borrower: Marie Elizabeth McAleenan
Jurisdiction
England and Wales
Judgment Date
17 June 2025
Procedural Posture
Compulsory Purchase Compensation Determination / Final Determination on Written Representations
Outcome
compensation awarded to mortgagee
Legal Topics
Compulsory Acquisition, Mortgagee Compensation, Valuation of Property, Statutory Interest, Costs of Compensation Proceedings
Property Law Compulsory Purchase Mortgage Law Compulsory Acquisition Mortgagee Compensation Valuation of Property Statutory Interest Costs of Compensation Proceedings

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Parties

Bank of Scotland PLC (Birmingham Midshires Division)

Claimant

Burnley Borough Council

Acquiring Authority

Patrick James McAleenan

Borrower

Marie Elizabeth McAleenan

Borrower

Procedural Posture

Compulsory Purchase Compensation Determination / Final Determination on Written Representations

Legal Issues

  1. 1 How should compensation be determined when a compulsorily acquired property is subject to a mortgage exceeding its value and the mortgagors do not participate?
  2. 2 Is the agreed compensation sum supported by valuation evidence?
  3. 3 What is the entitlement to statutory interest and costs?

Ratio Decidendi

The Tribunal determined that, in the absence of participation by the mortgagors, compensation of £45,000, supported by expert valuation evidence, is payable to the bank as mortgagee under section 15 of the Compulsory Purchase Act 1965, together with statutory interest and reasonable costs to be agreed between the parties.

Court Disposition

compensation awarded to mortgagee

Orders

  • Compensation of £45,000 to be paid by Burnley Borough Council to Bank of Scotland PLC in part satisfaction of the mortgage debt.
  • Statutory interest on the compensation from 23 July 2024 to be paid, amount to be agreed between the parties.