Zumred Quadir Khan v Stockton-on-Tees Borough Council

Zumred Quadir Khan v Stockton-on-Tees Borough Council

Compensation is determined as the market value of the property in its actual derelict condition at the valuation date (£15,000), with a basic loss payment of 7.5% of market value (£1,125), and agreed boarding up costs (£288). Loss of rent and unsubstantiated professional fees are disallowed. Basic loss payment is calculated on market value only, not the total claim.

Parties
Claimant: Zumred Quadir Khan; Acquiring Authority: Stockton-on-Tees Borough Council
Jurisdiction
England and Wales
Judgment Date
21 December 2017
Procedural Posture
Compulsory Purchase Compensation / Final Determination With Costs Addendum
Outcome
compensation awarded to claimant
Legal Topics
Compulsory Purchase, Market Value Assessment, Basic Loss Payment, Costs of Reference
Land Law Compulsory Acquisition Compensation Compulsory Purchase Market Value Assessment Basic Loss Payment Costs of Reference

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Parties

Zumred Quadir Khan

Claimant

Stockton-on-Tees Borough Council

Acquiring Authority

Procedural Posture

Compulsory Purchase Compensation / Final Determination With Costs Addendum

Legal Issues

  1. 1 How should market value be determined for a derelict property acquired under compulsory purchase?
  2. 2 What is the appropriate cost of refurbishment to be deducted from market value?
  3. 3 Is the claimant entitled to loss of rent?

Ratio Decidendi

Compensation is determined as the market value of the property in its actual derelict condition at the valuation date (£15,000), with a basic loss payment of 7.5% of market value (£1,125), and agreed boarding up costs (£288). Loss of rent and unsubstantiated professional fees are disallowed. Basic loss payment is calculated on market value only, not the total claim.

Court Disposition

compensation awarded to claimant

Orders

  • Stockton-on-Tees Borough Council to pay £16,413 to the claimant comprising market value, basic loss payment, and boarding up costs.
  • Stockton-on-Tees Borough Council to pay claimant's pre-reference and post-reference costs totalling £1,845 including VAT.