Case No. UKUT-0074-(LC)

Total £57,094.0043. The valuation fee is a valid head of claim, even though the claimants’ former surveyor did not represent them in the reference. Evidence of Dunsin’s charges was provided. However, there was no explanation as to why this was not included under the heading of “legal and professional costs” for which a further £14,354 was claimed. No documentary evidence to support that claim was produced, such as copies of paid invoices to solicitors. Indeed, regarding legal fees, it is clear from the documentary evidence that Mr Yazdiha included within his bundle of documents (mainly copy email exchanges) that the claimants have not been legally or professionally represented in connection with either the County Court claim, or this reference. The only apparent formal involvement of Perrin Myddleton was in connection with the transfer of the advance payment, Mr Yazdiha emailing the Council with confirmation of their appointment on 10 September 2016. 44. Mr Patel explained that in accordance with the Council’s normal policy, the offers of professional and legal fees in the sum of £3,125 each were “based upon a typical disturbance package and fees agreed on other similar acquisitions”. In my judgment, the Council has been more than fair in its offer of £6,250 regarding legal and professional costs for a claim where, apart from the Dunsin valuation, there was no evidence that such costs have been incurred. I therefore determine that part of the disbursements issue at £6,250 – to include the Dunsin valuation fee.45. As to the claim for SDLT, the claimants’ argument was that it should be calculated at the rates prevailing when the value of the property is finally determined (in other words, the date of this decision). Recent government legislation has significantly increased SDLT rates on buy-to-let properties, and Mr Yazdiha thus urged the Tribunal to reflect the effect of the increase to 5% on the purchase price in its decision. The Council agreed to make such a payment but pointed out that section 5A, Land Compensation Act 1961 requires compensation for the value of land taken to be determined as at the vesting or valuation date. That is how the Council has calculated the claimants’ entitlement under this head of claim and I agree that the appropriate sum should be assessed as at the valuation date. However, the claimants have adduced no evidence that they have yet incurred the cost of acquiring a replacement property, and as such no liability for SDLT has so far been incurred, The Council’s offer under this head is thus effectively an award by consent. I therefore determine this part of the claim at the £3,750 offered.46. There was no support of any description produced by the claimants in respect of the claim for value of furniture left in the property other than that it remained for the use of the tenant. Mr Patel referred to s.10A of the 1961 Act which provides:“10A Expenses of owners not in occupation Where, in consequence of any compulsory acquisition of land(a) the acquiring authority acquire an interest of a person who is not then in occupation of the land; and (b) that person incurs incidental expenses in acquiring, within the period of one year, beginning with the date of entry, an interest in other land within the United KingdomThe charges or expenses shall be taken into account in assessing the compensation as they would be taken into account if he were in occupation of the land.”He said that the claimants should have ensured that their tenant had left the property by the vesting date, and in any event they had not subsequently purchased a replacement property within the UK. The provisions do not therefore apply. It was also submitted by counsel that the Council had been put to additional costs and losses in having to take steps to remove the tenant by eviction, with the assistance of bailiffs, and vacant possession was not achieved until 26 September 2016. Any such costs would be recoverable by deduction from the compensation payable to the person in occupation who failed to give possession when required to do so. The claimants were not themselves in occupation. I nevertheless disallow this head of claim because of an absence of any evidence from the claimants concerning the value of any furniture which may have belonged to them and which may have remained in the property.47. Turning to loss of rent, there had been no explanation of how the amount claimed had been calculated. However, at the hearing, Mr Yazdiha said that the rent of the flat at the valuation date was £1,190 per calendar month. The figure claimed was the loss of that income from the vesting date until the time of preparing the statement of case to this Tribunal - 22 March 2017, due to the Council’s “failure to expeditiously and with any reasonable speed, agree a figure of compensation.” This failure led to the claimants being in a position where the compensation offered (and the advance payment eventually made based upon that offer) was not sufficient to allow them to purchase an equivalent property and thus reinstate the rental income. However, as almost another year had passed by, he said that the losses should be calculated at the monthly rate up until the date the decision was issued, and the compensation figure was finally determined. The losses would, therefore, be significantly more than the £19,040 set out in the claim. It was asserted that the claim was justified on the principle of equivalence as the claimants should not be worse off due to the compulsory purchase. 48. For the Council, it was submitted that, aside from whether or not the loss of rent was a justifiable head of claim, the sum sought in the particulars of claim (which had a handwritten date of 22 March 2017 (page 136 of the claimants’ bundle)), if divided by the stated monthly rate, was equal to approximately 16 months’ rent, which would take the claim up to 8 May 2017. 49. In any event, Ms Piears said, this head of claim is actually a claim for future rent after the vesting date and it should therefore be denied for the following reasons. Firstly, the claim is too remote, and the loss of income was not caused by the compulsory acquisition (see Director of Buildings and Lands v Shun Fung Ironworks Ltd [1995] 1 EGLR 19). Secondly, the claimants (and all the other affected leaseholders) were provided with a copy of the South Kilburn Regeneration Programme “Guide for Leaseholders” dated January 2013 and investor owners also had available a further booklet produced by the Department of Communities and Local Government (DCLG) entitled ‘Compulsory Purchase and Compensation – Compensation to Business Owners and Occupiers’ dated October 2004. The DCLG booklet said:“