UT Neutral citation number: [2010] UKUT 292 (LC)

ACQ/354/2008

                            TRIBUNALS, COURTS AND ENFORCEMENT ACT 2007

COMPENSATION – compulsory purchase – dwelling house – absent and untraceable owner – valuation of freehold interest – compensation assessed at £70,000

                                  IN THE MATTER of A NOTICE OF REFERENCE

                                                                           BY

                                                WOLVERHAMPTON CITY COUNCIL                 Acquiring

Authority

                                    Re: 68 Ashland Street, Merridale, Wolverhampton

                                                         West Midlands WV3 0BN

           Determination on the basis of written representations pursuant to Rule 27 of the

                                            Lands Tribunal Rules 1996 (as amended)                                     

                                                                    DECISION

1.           This is a reference to determine the amount of compensation payable in respect of the compulsory purchase of the freehold interest in 68 Ashland Street, Merridale, Wolverhampton WV3 0BN (the subject property).   The interest was acquired under the Wolverhampton City Council (68 Ashland Street) Compulsory Purchase Order 2007 (the CPO) by means of a General Vesting Declaration 29 January 2008, this being the valuation date for the purposes of this reference.

2.           The acquiring authority has tried but failed to establish or trace the next of kin of the registered owner, Mr Percival Henry Llewellyn Green, who is known to have died prior to 2000.   I have read the witness statements of Natalie Healy, Neighbourhood Sustainment Officer, and Elaine Bowater, Legal Assistant, dated 11 August 2009, setting out the procedures adopted and actions taken both to trace the owner’s next of kin and to effect the CPO, and I am satisfied that all reasonable steps have been taken in that regard. 

Evidence

3.           Mr Errol Walker MRICS, a chartered surveyor with District Valuer Services – Wolverhampton Valuation Office, produced an expert valuation report dated 13 November 2009.   He had inspected the property on 24 April 2008.

4.           68 Ashland Street is a two storey terraced house of about 85 sq m having been traditionally constructed of brick in the early 1900s, and is situated in a short cul-de-sac in a densely populated urban residential area, approximately ¾ mile west of Wolverhampton City Centre.    At the valuation date it contained two living rooms, kitchen and bathroom on the ground floor, with three bedrooms on the first.  The front elevation of the house is direct onto the pavement, and to the rear there is a yard.   Mr Walker said that it was evident that the property had been unoccupied for a considerable number of years, and had been allowed to fall into a derelict state.   Services had been disconnected, and the house had been boarded up, meaning that an internal inspection could only be made by torchlight.

5.           The timber framed windows were rotten and in need of replacement, there was no central heating, the kitchen and bathroom fittings had been ripped out, and the bathroom ceiling had collapsed allowing damage from the elements.   All wall and ceiling plaster was, in fact, in poor condition and areas of boarding to the first floor had rotted making access dangerous.   The adjoining property had been demolished some years ago, and Mr Walker said this may have contributed to structural problems.   In his opinion, complete and extensive modernisation and refurbishment was required to bring the property up to an acceptable habitable standard.

6.           The property was acquired under as part of Wolverhampton City Council’s Empty Property Strategy under section 17 of the Housing Act 1985, to provide housing accommodation.

7.           As to the freehold value, Mr Walker said that he had based his opinion of £70,000 upon comparable transactions within the vicinity at and around the valuation date, and that figure took into account the need for substantial expenditure on repair and refurbishment.    47 Merridale Street West (off which Ashland Street leads), is a similar mid-terrace three bedroom house of 107 sq m had been fully modernised including new roof coverings and uPVC replacement double glazed windows throughout.  That was sold in September 2007 at £108,050.   125 Merridale Street West, another 3 bedroom inner terrace house of 96 sq m was sold, modernised, in February 2008 at £115,000 and 101 Merridale Street West with two bedrooms and an area of 91 sq m was sold, modernised, in December 2007 at £95,000.

Conclusions

8.           Having taken into consideration the contents of Mr Walker’s report and the analysis of comparables that he provided, I am satisfied that his opinion fairly reflects the open market value of the subject property at 29 January 1998.

9.           I therefore determine that the council shall pay compensation in the sum of £70,000 into court.

                        Dated 5 January 2010

                        P R Francis FRICS