Lloyds Banking Group Plc v Burnley Borough Council

Lloyds Banking Group Plc v Burnley Borough Council

The Tribunal determined that the most appropriate comparable sale was a similar property in poor condition that sold for £72,500 shortly after the valuation date. Given the subject property's similar state but lack of clearance and cleaning, a value of £70,000 was appropriate. Compensation of £70,000, plus any statutory interest, is to be paid to the bank in part satisfaction of the mortgage debt.

Parties
Claimant: Lloyds Banking Group plc; Acquiring Authority: Burnley Borough Council; Mortgagor: David Geoghegan
Jurisdiction
England and Wales
Judgment Date
22 January 2024
Procedural Posture
Compulsory Purchase Compensation Determination / Determination on Written Representations
Outcome
compensation awarded to mortgagee
Legal Topics
Compulsory Purchase, Mortgage Debt, Compensation Assessment, Valuation of Property
Property Law Compulsory Acquisition Compulsory Purchase Mortgage Debt Compensation Assessment Valuation of Property

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Parties

Lloyds Banking Group plc

Claimant

Burnley Borough Council

Acquiring Authority

David Geoghegan

Mortgagor

Procedural Posture

Compulsory Purchase Compensation Determination / Determination on Written Representations

Legal Issues

  1. 1 How should compensation be determined for a compulsorily acquired property subject to a mortgage where the value is less than the outstanding mortgage debt and the mortgagor does not participate?
  2. 2 What is the appropriate market value of the property at the valuation date given its dilapidated condition?

Ratio Decidendi

The Tribunal determined that the most appropriate comparable sale was a similar property in poor condition that sold for £72,500 shortly after the valuation date. Given the subject property's similar state but lack of clearance and cleaning, a value of £70,000 was appropriate. Compensation of £70,000, plus any statutory interest, is to be paid to the bank in part satisfaction of the mortgage debt.

Court Disposition

compensation awarded to mortgagee

Orders

  • Compensation of £70,000, plus any statutory interest, to be paid to Lloyds Banking Group plc in part satisfaction of the mortgage debt.
  • No award of costs.