Bank of Scotland PLC v Burnley County Council

Bank of Scotland PLC v Burnley County Council

The Tribunal determined that compensation of £35,000, plus statutory interest, should be paid to the bank as mortgagee, as the mortgagor did not participate and the agreed sum reflected market value and statutory requirements.

Parties
Claimant: Bank of Scotland PLC; Acquiring Authority: Burnley Borough Council; Mortgagor: Patricia Ann Plummer
Jurisdiction
England and Wales
Judgment Date
22 October 2024
Procedural Posture
Compulsory Purchase Compensation / Determination on Written Representations
Outcome
compensation awarded to mortgagee
Legal Topics
Compulsory Purchase Compensation, Mortgage Debt, Valuation of Property, Statutory Interest
Property Law Compulsory Purchase Land Law Compulsory Purchase Compensation Mortgage Debt Valuation of Property Statutory Interest

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Parties

Bank of Scotland PLC

Claimant

Burnley Borough Council

Acquiring Authority

Patricia Ann Plummer

Mortgagor

Procedural Posture

Compulsory Purchase Compensation / Determination on Written Representations

Legal Issues

  1. 1 What is the appropriate compensation payable to the mortgagee where the value of compulsorily acquired property is less than the outstanding mortgage debt and the mortgagor does not participate?
  2. 2 Is the agreed compensation sum supported by market evidence and statutory requirements?

Ratio Decidendi

The Tribunal determined that compensation of £35,000, plus statutory interest, should be paid to the bank as mortgagee, as the mortgagor did not participate and the agreed sum reflected market value and statutory requirements.

Court Disposition

compensation awarded to mortgagee

Orders

  • Compensation of £35,000 to be paid to Bank of Scotland PLC in part satisfaction of the mortgage debt.
  • Statutory interest to be paid from 2 May 2023, amount to be agreed between the parties.