Section 52ZC: Land subject to mortgage: supplementary, Land Compensation Act 1973

This section applies for the purposes of sections 52ZA and 52ZB.

Within 28 days of receiving a request for a payment under section 52ZA or 52ZB, the acquiring authority must—

determine whether they have enough information to give effect to section 52ZA or, as the case may be, 52ZB, and

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

A request under section 52ZA(3) or 52ZB(3) must be made in writing and must be accompanied by the written consent of the mortgagee.

In a case where the compulsory acquisition to which the request relates is one to which the Lands Clauses Consolidation Act 1845 applies, the acquiring authority must make any payment under section 52ZA or 52ZB—

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 under section 52ZA(3) or 52ZB(3), ...

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

In all other cases, the authority must make any payment under section 52ZA or 52ZB—

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 under section 52ZA(3) or 52ZB(3), ...

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

Subsections ... (8) to (9) of section 52 apply to a payment which may be or is made under section 52ZA or 52ZB as they apply to a payment which may be or is made under section 52.

The relevant amount is the amount of the compensation agreed or estimated as mentioned in section 52(3).

If the land is subject to more than one mortgage, the reference in sections 52ZA(1)(c) and 52ZB(1)(c) to the principal is to the aggregate of the principals of all of the mortgagees.

A payment made to a mortgagee under section 52ZA or 52ZB—

must be applied by the mortgagee in or towards the discharge of the principal, interest and costs and any other money due under the mortgage;

must be taken to be a payment on account of compensation and treated for the purposes of section 52(10) as if it were an advance payment made under section 52;

must be taken, with effect from the date of the payment, to reduce by the amount of the payment the amount in respect of which interest accrues for the purposes of section 11(1) of the Compulsory Purchase Act 1965 or any bond under section 85 of the Lands Clauses Compensation Act 1845;

must be taken into account for the purposes of determining any payments (or payments into court) which may be made for the purposes of sections 14 to 16 of the Compulsory Purchase Act 1965.

If the amount, or aggregate amount, of any payments under—

sections 52 and 52ZA, or

section 52ZB,

on the basis of the acquiring authority's estimate of the compensation exceed the compensation as finally determined or agreed, the excess must be repaid by the claimant.

No payment must be made to a mortgagee—

if any of the circumstances mentioned in subsection (10) applies, or

if the compulsory acquisition is only of a right over land.

The circumstances are—

payment has been made under section 14(2) of the Compulsory Purchase Act 1965;

a notice under section 14(3) of that Act has been given;

there is an agreement under section 15(1) or 16(1) of that Act or the matter has been referred to the Upper Tribunal under that section.

The claimant in relation to settled land for the purposes of the Settled Land Act 1925 is the persons entitled to give a discharge for capital money.

Section 52ZC: Land subject to mortgage: supplementary

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