I am a tenant, not the owner — can I claim?

Yes. Business occupiers have their own claim for disturbance and loss payments, separate from the landlord's claim for the freehold.

Should I accept the authority's first offer?

Rarely. Opening offers frequently omit or understate disturbance and loss payments.

When should I take advice?

As soon as a scheme is published. Records of trade, fit-out spend and relocation options gathered early are far more persuasive than reconstructions later.

Will I be compensated for lost profits?

Yes, where loss of profit flows from the acquisition — temporary loss on relocation, or total extinguishment of goodwill where relocation is not reasonably possible.

What is a loss payment?

A statutory payment on top of value and disturbance, calculated as a percentage of the value of the interest or the rateable value, subject to statutory caps.

Can I be forced out before compensation is agreed?

Possession can be taken before the claim is settled, usually with an advance payment. The balance, with interest, is agreed or determined afterwards.

Compulsory Purchase (CPO)

Compulsory purchase can end a trading location with little warning. The compensation code is designed to leave you no worse off, but only if the claim is properly built — market value is often the smallest part of it.

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Heads of claim

Market value of the interest acquired
Disturbance: relocation, fit-out, removals, professional fees, temporary loss of profit
Total extinguishment of goodwill where relocation is not reasonably possible
Basic, occupier's and home loss payments
Severance and injurious affection where part only is taken

Getting ahead of the timetable

Engagement before the notice to treat or general vesting declaration usually improves the outcome: records of trade, fit-out costs and relocation searches are far more persuasive when gathered contemporaneously.

Fees

Reasonable professional fees form part of the claim and are normally paid by the acquiring authority.

Common questions

I am a tenant, not the owner — can I claim?: Yes. Business occupiers have their own claim for disturbance and loss payments, separate from the landlord's claim for the freehold.
Should I accept the authority's first offer?: Rarely. Opening offers frequently omit or understate disturbance and loss payments.
When should I take advice?: As soon as a scheme is published. Records of trade, fit-out spend and relocation options gathered early are far more persuasive than reconstructions later.
Will I be compensated for lost profits?: Yes, where loss of profit flows from the acquisition — temporary loss on relocation, or total extinguishment of goodwill where relocation is not reasonably possible.
What is a loss payment?: A statutory payment on top of value and disturbance, calculated as a percentage of the value of the interest or the rateable value, subject to statutory caps.
Can I be forced out before compensation is agreed?: Possession can be taken before the claim is settled, usually with an advance payment. The balance, with interest, is agreed or determined afterwards.

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Live assistant — compulsory purchase (cpo)

Ask anything about this topic and get an immediate answer drawn from this page. General guidance only — specific advice depends on your lease.

Talk it through

Initial advice is free — tenant side only.

Chris McGarrigle MRICS, chartered since 1989, acting for occupiers across England, Scotland, Northern Ireland and Ireland.

chris@mcgarrigle.com

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