The following classes of person may enjoy a right to compensation arising from the compulsory acquisition of land:
- (a) a person who is required to convey, assign or surrender an interest in land to the acquiring authority (see Paragraphs 1.7 and 1.8 below)
- (b) a person whose interest in land is depreciated in value although no part of it is acquired (section 10 CPA 1965 or Part I Land Compensation Act 1973 (LCA 1973))
- (c) a person who is displaced from lawful possession of any land acquired under compulsory powers but who has no compensatable interest in such land (section 37 LCA 1973)
The above entitlements comprise compensation for the acquisition, or depreciation in value, of land or the consequential losses arising therefrom. There are in addition statutory entitlements to which the claimant may be entitled such as:
- (d) Home Loss Payments to a person who is displaced from a dwelling by compulsory powers (section 29 LCA 1973)
- (e) Basic Loss and Occupiers’ Loss Payments to a person who is displaced from property or land other than a dwelling by compulsory powers (sections 33A to 33K LCA 1973)
1.7 Freeholders and leaseholders
Freeholders and leaseholders (except where their unexpired term at date of entry is less than a year) who have been or are deemed to have been served with notice to treat are entitled to compensation in respect of the acquisition of their interest by the acquiring authority.
1.8 Short term tenants
(a) Contractual tenants
Contractual tenants (including Assured/Assured Shorthold residential tenants) under a tenancy for a year or from year to year and tenants holding under a lease originally granted for a term of years but having less than a year unexpired at date of entry have an interest in land and in consequence are entitled to compensation under section 20 CPA 1965 if they are required to give up possession before the expiration of their term or interest. They may also be entitled in appropriate circumstances to Home, Basic or Occupiers’ Loss Payments under sections 29 to 33K LCA 1973.
(b) Statutory tenants
Statutory tenants under the Rent Acts have no estate or interest in land and therefore are not entitled to compensation under section 20 CPA 1965. They may, however, be entitled in appropriate circumstances to Home Loss Payments and/or disturbance payments under section 29 or section 37 LCA 1973. Protected and Assured tenants not entitled to compensation under (a) above may similarly be entitled to Home Loss and/or disturbance payments.
A licensee has no interest in land entitling him to compensation from the acquiring authority except that he may qualify for a disturbance payment under section 37 LCA 1973 provided he is in lawful possession. Agricultural tenants are excluded from the provisions of section 37 LCA 1973 but may be entitled to a discretionary payment under section 22 Agriculture (Miscellaneous Provisions) Act 1963.
1.10 Holders of options to purchase
The holder of an option to purchase the land acquired may be entitled to claim compensation. (Oppenheimer v Minister of Transport  1 KB 242).
1.11 Persons entitled to the benefit of easements or restrictive covenants
Persons entitled to the benefit of an easements or restrictive covenants over or affecting the land acquired are not entitled to notice to treat but may have a right to claim compensation under section 10 CPA 1965 for depreciation in the value of their interest as a result of losing the benefit of the easement or restrictive covenant.
Sections 14 to 17 CPA 1965 lay down provisions governing the acquisition of land subject to mortgage. The acquiring authority may secure the release of the mortgagee’s interest by paying the principal and interest due whether or not it has previously purchased the equity of redemption (the mortgagor’s interest). If the value of the mortgaged land is less than the outstanding charge, the value of the land or the compensation to be paid for it must be agreed between the mortgagee and the person entitled to the equity of redemption on the one part and the acquiring authority on the other part or, in default of agreement, be determined by the Upper Tribunal (Lands Chamber). The amount so agreed or determined shall be paid to the mortgagee who shall then convey or release all interest in the mortgaged land to the acquiring authority. Where part only of the land subject to the mortgage is taken and that part is of less value than the outstanding mortgage, and the mortgagee does not consider the remaining land to be sufficient security for the outstanding charge or is unwilling to release the part required, the value of such part and the compensation for severance shall, failing agreement between the parties, be determined by the Upper Tribunal (Lands Chamber) and paid to the mortgagee.