England and Wales Lands Tribunal

[2000] EWLands ACQ_27_1999 (20 July 2000)

ACQ/27/1999

LANDS TRIBUNAL ACT 1949

COMPENSATION - compulsory acquisition of house in poor condition - comparables - cost of repairs - sale of house - compensation £3,000

IN THE MATTER of a NOTICE OF REFERENCE

BY PENDLE BOROUGH COUNCIL Acquiring

Authority

Re: 30 Essex Street, Colne, Lancashire

Tribunal Member: P H Clarke Esq FRICS

Determination without an oral hearing under

rule 27 of the Lands Tribunal Rules 1996


 


DECISION OF THE LANDS TRIBUNAL

1. This is a reference to determine the compensation payable for the compulsory acquisition of a house in poor repair. The acquiring authority have been unable to trace the owner.
2. This reference has been determined without an oral hearing under rule 27 of the Lands Tribunal Rules 1996. I have received two expert reports prepared by Mrs Glenys Barnes ARICS, an estates officer with Pendle Borough Council ("the Council"). The property was acquired by the Council under The Borough of Pendle (30 Essex Street, Colne) Compulsory Purchase Order 1997. A general vesting declaration was made on 24 September 1997 and took effect on 30 October 1997. This is the date of valuation.
3. The subject property is an end of terrace house on a sloping site in a quiet residential area close to the town centre, with views across attractive open countryside. The house is built of stone with pitched slate roof. It has a two-storey rear extension. Accommodation comprises two living rooms and a kitchen on the ground floor, three bedrooms and a bathroom on the first floor and an attic. When I inspected the property externally in June 2000 it had been repaired and refurbished. It appeared to be in good repair and had an attractive appearance. At the time of acquisition, however, the house was in a dilapidated condition. I have been supplied with an inspection report listing the numerous defects at that time and photographs which show the poor condition.
4. The Council believe that they have acquired the long leasehold interest in the subject property but has been unable to trace the owner and cannot provide further details. The house was vacant.
5. Mrs Barnes values the subject property at £3,000. She supports this figure by reference to two comparables, both houses in poor repair in the nearby town of Nelson, and details of the cost of repairs and subsequent sale of the subject property. As to the comparables, 2 Dalton Street, Nelson was compulsorily acquired by the Council in November 1997 at a price of £5,000, agreed with the owner's agent. This is an end of terrace three bedroom house. 14 Parrock Street, also in Nelson, was compulsorily acquired by the Council in April 1998 at a price of £3,500, agreed with the owner's agent. This two bedroom house was occupied when purchased. I have been provided with photographs and inspection notes of both properties.
6. These comparables are similar terrace houses in poor condition but suffer from two disadvantages. First, they are not in Colne but in the nearby town of Nelson and I was given no evidence to show that the level of house prices was generally the same in both towns. Second, they are not open market sales but negotiated settlements on compulsory purchase. Normally I would give little weight to these comparables. I therefore requested further evidence as to the works carried out at the subject property and the subsequent sale. Mrs Barnes lodged a further report.
7. After acquisition of the subject property the Council prepared a schedule of works required to bring the house up to an improved for sale 30 year fitness standard. These works were extensive and included re-roofing, provision of damp proof course, replastering and painting, renewal of flooring, the demolition and rebuilding of the kitchen extension, re-wiring, installation of gas and provision of central heating. Tenders were sought and six were submitted. The lowest was £40,298 and the highest £52,600. The lowest tender was accepted and the works were carried out at a cost of £38,649. The house was then sold by tender at a price agreed in May 1999 of £32,500. Mrs Barnes considers that house prices in Colne did not change materially between the autumn of 1997 and the spring of 1999. These figures show that the cost of the works was greater than the realised sale price of the house as repaired. I am satisfied that this additional evidence shows that the valuation of Mrs Barnes of £3,000 is not too low and I accept it.
8. I determine that the compensation payable for the compulsory acquisition of the long leasehold interest with vacant possession in 30 Essex Street, Colne is £3,000 (three thousand pounds).

DATED: 20 July 2000

(Signed: P H Clarke)