[2025] UKUT 00189 (LC)

The bank has supplied photographic evidence of the exterior of the property, dated 1 December 2022 and 15 March 2023, which shows it to be uninhabited and boarded up, with rubbish and debris in the rear yard. Further extensive photographic evidence dated 12 July 2023 shows the interior to have been abandoned and in disrepair, with debris in every room.

Valuation evidence is supplied by the report of the authority’s surveyor, Margaret Rutherford BSc (Hons) MSc MRICS, who inspected the property on 25 March 2023 and 11 July 2024. Her report recommended a valuation for compensation of £45,000, as agreed with the bank, and provided evidence of five comparable sales in the locality in support of that figure. I am therefore satisfied that the compensation sum agreed by the parties is supported by expert valuation evidence.

The authority in its response to the notice of claim confirmed its liability to pay statutory interest on the compensation from the date of vesting on 23 July 2024, and confirmed the claimant’s entitlement to a claim for reimbursement of reasonable costs incurred in negotiating and settling the compensation claim.

I determine the value of the subject property, on the vesting date of 23 July 2024, at £45,000.

I am satisfied on the evidence that the mortgagors have chosen not to participate in the negotiations for compensation and that they have not responded to the reference. The bank made a valid claim under 15(1) of the Act, and under section 15(2) I determine that compensation of £45,000, plus any statutory interest, should be paid to the bank in part satisfaction of the mortgage debt secured against the property. The amount of the statutory interest payable shall be agreed between the bank and the authority, along with the amount of compensation for reasonable costs incurred by the bank in settling and negotiating the claim.