Paragraph 25 Assessment of the amount to be paid by way of compensation

The amount to be paid by way of compensation under this Part must be assessed in accordance with this paragraph.

The rules set out in section 5 of the Land Compensation Act 1961^f1 have effect for the purposes of this paragraph as they have effect for the purpose of assessing compensation for the compulsory acquisition of an interest in land, so far as applicable and subject to any necessary modifications.

No account is to be taken of any enhancement of the value of an interest in land by reason of any building erected, work done, or improvement or alteration made on land in which the grantor is, or was at the time of erection, doing or making, directly or indirectly concerned if the erection of the building, the doing of the work, the making of the improvement or the alteration was not reasonably necessary and was undertaken with a view to obtaining compensation or increased compensation.

In calculating the amount of a loss under paragraph 22(e), expenditure incurred in the preparation of plans or on other similar preparatory matters must be taken into account.

Where the interest in respect of which compensation is to be assessed is subject to a mortgage—

Compensation must include an amount equal to the grantor’s reasonable valuation and legal expenses.