Commercial Offer instead of CPO

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Hi Heather

We have purchased by agreement when approval for CPO is in place.   

Nicola J Fox

Hi Nicola

So you havent gone through the CPO process but agreed a nominal amount, have I got that right. If so can you share wih me how you did this.

Thanks Haether

Hi Heather,

No, we have submitted a CPO but negotiated and acquired properties by agreement, paying full market value and hence withdrawing the CPO. 

 

Nicola J Fox

I have approached owners offering to purchase at market value prior to going down the CPO route at all and have been successful.  This saves the time and cost of doing a CPO. 

Hi Heather,

The 2018 MHCLG Guidance encourages negotiation with the property owner throughout the CPO process. Paragraph 3 of the Guidance makes it clear that you can offer a higher sum in compensation at an early stage than a property owner might otherwise get if the CPO process runs to the end. This is because you can take into account the costs you might incur if it drags on, including costs of officer time.

Para 3:

When offering financial compensation for land in advance of a compulsory purchase order, public sector organisations should, as is the norm, consider value for money in terms of the Exchequer as a whole in order to avoid any repercussive cost impacts or pressures on both the scheme in question and other publicly-funded schemes.

 

Acquiring authorities can consider all of the costs involved in the compulsory purchase process when assessing the appropriate payments for purchase of land in advance of compulsory purchase. For instance, the early acquisition may avoid some of the following costs being incurred:

 

  • legal fees (both for the order making process as a whole and for dealing with individual objectors within a wider order, including compensation claims)

     

  • wider compulsory purchase order process costs (for example, staff resources)
     
  • the overall cost of project delay (for example, caused by delay in gaining entry to the land)
     
  • any other reasonable linked costs (for example, potential for objectors to create further costs through satellite litigation on planning permissions and other orders)
     

    In order to reach early settlements, public sector organisations should make reasonable initial offers, and be prepared to engage constructively with claimants about relocation issues and mitigation and accommodation works where relevant.

    Kind regards, Fiona Anthony, Solicitor, nplaw