Section 52: Right to advance payment of compensation., Land Compensation Act 1973

An acquiring authority may make an advance payment on account of compensation payable by them for the compulsory acquisition of an interest in land if a request has been made under subsection (2) after the compulsory acquisition has been authorised.

In a case where the compulsory acquisition is one to which the Lands Clauses Consolidation Act 1845 applies, the acquiring authority may not make an advance payment if they have not taken possession of the land, but must do so if they have.

In all other cases, an acquiring authority must make an advance payment under subsection (1) if, before or after the request is made, the authority—

give a notice of entry under section 11(1) of the Compulsory Purchase Act 1965, or

execute a general vesting declaration under section 4 of the Compulsory Purchase (Vesting Declarations) Act 1981 in respect of that land.

A request for advance payment must be made in writing by the person entitled to it ("the claimant") and must include—

details of the claimant's interest in the land, and

information to enable the acquiring authority to estimate the amount of the compensation in respect of which the advance payment is to be made.

Within 28 days of receiving a request, the acquiring authority must—

determine whether they have enough information to estimate the amount of compensation, and

if they need more information, require the claimant to provide it.

Subject to subsection (6) below, the amount of any advance payment under this section shall be equal to 90 per cent. of the following amount, that is to say—

if the acquiring authority and the claimant have agreed on the amount of the compensation, the agreed amount;

in any other case, an amount equal to the compensation as estimated by the acquiring authority.

An advance payment required by subsection (1A) must be made—

before the end of the day on which the authority take possession of the land, or

if later, before the end of the period of two months beginning with the day on which the authority—

received the request for the advance payment, ...

received any further information required under subsection (2A)(b), or

An advance payment required by subsection (1B) must be made—

before the end of the day on which the notice of entry is given or the general vesting declaration is executed, or

if later, before the end of the period of two months beginning with the day on which the authority—

received the request for the advance payment, ...

received any further information required under subsection (2A)(b), or

Where, at any time after an advance payment has been made on the basis of the acquiring authority's estimate of the compensation, it appears to the acquiring authority that their estimate was too low, they shall, if a request in that behalf is made in accordance with subsection (2) above, pay to the claimant the balance of the amount of the advance payment calculated as at that time.

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If the land is subject to a mortgage sections 52ZA and 52ZB apply.

Any advance payment on account of compensation in respect of an interest which is settled land for the purposes of the Settled Land Act 1925 shall be made to the persons entitled to give a discharge for capital money and shall be treated as capital money arising under that Act.

Before an acquiring authority make an advance payment under this section on account of compensation in respect of any interest in land they shall deposit with the council of the district or London borough or Welsh county or county borough in which the land is situated particulars of the payment to be made, the compensation and the interest in land to which it relates;. . .

Any particulars deposited pursuant to subsection (8) above shall be a local land charge and for the purposes of the Local Land Charges Act 1975 the council with whom any such particulars are deposited shall be treated as the originating authority as respects the charge thereby constituted.

Where a local land charge is registered in the ... local land charges register pursuant to subsection (8A) above and the advance payment to which the charge relates is made to the claimant, then if thereafter

the claimant's interest in some or all of the land is acquired by another person, or

the claimant creates an interest in some or all of the land in favour of a person other than the acquiring authority,

the amount of the advance payment together with any amount paid under section 52A shall be set off against any sum payable by the authority to that other person in respect of the compulsory acquisition of the interest acquired or the compulsory acquisition or release of the interest created.

Where an advance payment has been made under this section on account of any compensation—

section 76 of the Lands Clauses Consolidation Act 1845 and section 9 of the Compulsory Purchase Act 1965 (refusal of owner to convey on tender of compensation) shall have effect as if references to the compensation were references to the balance thereof remaining unpaid . . .

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This section shall apply to compensation for the compulsory acquisition of a right over land as it applies to compensation for the compulsory acquisition of an interest in land, and shall so apply with the necessary modifications and as if references to taking possession of the land were references to first entering it for the purpose of exercising the right.

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Section 52: Right to advance payment of compensation.

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