Compensation for a business affected by a compulsory purchase order is calculated on one of two basis.
Relocation : The cost to relocate the business to a new premises. In addition to the cost to relocate, the business is also entitled to any profits lost as a result of the forced relocation.
Extinguishment of the Business : It’s archaic terminology but it is the phrase used where a business can not relocate. In this instance the acquiring authority or developer must acquire the property or lease and business outright including the goodwill of the business.
Although both basis are easily understood, negotiating these claims is not always so straight forward. You will be negotiating with a public sector organisation with obligations to protect public money. If not you will be negotiating with a private developer where the phrase blood from a stone comes to mind.
It is important to use an experienced, qualified surveyor from the moment you become aware a CPO is on the horizon to ensure your compensation claim is effectively managed.
If you are affected by or know anyone else that is being affected by CPO then please do get in touch.
? Croydon Advertiser
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