Successfully securing development value as part of A1 road widening scheme settlement

Michael Harman
Working with and advising the owners of a commercial warehouse

Michael Harman, Partner and specialist compulsory purchase solicitor at Holmes & Hills acted for the owner of a large commercial warehouse premises, part of the grounds of which were to be compulsorily purchased by National Highways as part of development of the A1 road widening scheme.

Unlocking negotiations with National Highways

The client owned a large commercial warehouse on land abutting the A1 road. National Highways had entered into negotiations to purchase part of the land owned by the client so as to facilitate the widening of the A1. The  client had intended to expand the warehouse, however the loss of part of the land to the road-widening scheme would prevent that expansion. After 5 years without progress the client sought advice from Michael and the specialist Compulsory Purchase and Development Consent Division at Holmes & Hills Solicitors.

Given the nature of the scheme and the property, Michael advised that the best course of action was to attempt to have the financial settlement with National Highways reflect the value of what could have been developed, given that a Certificate of Appropriate Alternative Development existed in respect of the warehouse expansion plans. However, at the point of instruction the client was approximately 2 months from the applicable limitation date. Michael therefore recommended a protective Lands Tribunal application with an agreement for a period for the parties to re-visit negotiations, hopefully with fresh impetus following a change in representation.

Outcome

Following discussion and extensive negotiation with National Highways, Michael achieved a settlement with National Highways whereby the value achieved for severance/injurious affection, in respect of land to be retained by the client following compulsory purchase of part of the land, amounted to 62.3% of the total settlement to be paid to the client, owing to the loss of the potential to develop.

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