Government Encroachment – How Is Your Property Evaluated?

Are you wondering how the government calculates the payment it offers as recompense when acquiring your land? Below are the main factors that go into this calculation: 

The market value of your property – the first thing that the government will consider in making their offer is the market value of your property. This is naturally calculated as per the current values of the market (hence, you can hardly find yourself at a loss, unless of course, severe depreciation of the land has resulted in your area). To be exact, the market value of the property is calculated as per the values that stand as of the date of acquisition.

  • Special values and advantages – under special advantages and values, the government basically considers if the tenant of the property has any specific advantages (that another tenant would not have) from residing or using the specific property. A very basic example to illustrate this would be a stationery store near a school. The stationery store naturally profits from being located near the school; were it a home, or another kind of store, it would not hold such as an advantage in the location. Accordingly, the relocation of such a tenant will prove a greater disadvantage – this is what is included under special values and advantages.
    • Potential losses – under potential losses, any and all kinds of losses from encroachment to the land is calculated. Just as a land compulsory land acquisition lawyers would argue that encroachment upon a particular strip of land would cause a greater depreciation to the land not encroached upon than is covered by recompense, the government takes this point into factor – especially when the entire property is not liable to acquisition.
      • Legal expenses – legal expenses basically translate to the expenses of hiring compulsory land acquisition lawyers. These lawyers basically provide consultation with regards to the fairness of the recompense offered by the government; they personally evaluate the property and establish a reasonable value. You should know that you are entitled to consult the opinions of such a trusted lawyer whenever the government sends you a notice of compulsory acquisition; and within reasonable limits, the government has to reimburse you for the expenses.
        • Consolations – technically known as ‘solatium’, consolations basically include all payments made due to inconveniences caused often on an emotional level. They include intangible reasons that are often divorced from economic reasons. For example, the government takes into consideration the circumstances of the owner of the property: his family circumstances (whether he lives alone, or with other individuals), his age and occupation. Also factored in is the length of time the owner has owned the property – the longer, higher the payment.