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Section 52ZA: Advance payments: land subject to mortgage

Land Compensation Act 1973 · 1973 c. 26View on legislation.gov.uk

Part IV: Compulsory Purchase

This section applies if—

a request is made for an advance payment under section 52(1) in respect of land,
the authority is required by section 52(1A) or (1B) to make the advance payment, and
the land is subject to a mortgage the principal of which does not exceed 90% of the relevant amount.

The advance payment made to the claimant must be reduced by the amount the acquiring authority think will be required by them to secure the release of the interest of the mortgagee (or all the mortgagees if there is more than one).

The acquiring authority must pay to the mortgagee the amount the acquiring authority think will be required by them to secure the release of the mortgagee's interest, if—

the claimant so requests, and
the mortgagee consents to the making of the payment.

If there is more than one mortgagee—

subsection (3) applies to each mortgagee individually, but
payment must not be made to a mortgagee before the interest of each mortgagee whose interest has priority to his interest is released.

The amount of the advance payment made to the claimant under section 52 and the amount of the payments made to mortgagees under this section must not in aggregate exceed 90% of the relevant amount.

Subsection (7) applies if—

the acquiring authority estimated the compensation,
it appears to the acquiring authority that their estimate was too low and they revise the estimate, and
a request is made by the claimant in accordance with section 52(2).

The provisions of subsections (2) to (5) must be re-applied on the basis of the revised estimate.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.