LT (REF/5/1987) 7 July 1988 Reference on the compensation payable by the council (E) to the claimant (C) on the compulsory purchase of C`s freehold interest in commercial premises in Epsom town centre . LT held that the compensation payable was £415,000 for the following reasons: 1) the zone A of the shopping areas was 16 psf; 2) the capitalisation rate of 6% used by E was preferred to the 5.25% used by C; 3) C`s figure for cost of possession (£30,000) was far too optimistic and the correct figure would be at or near E`s figure of £135,000; 4) it was concluded that, at the relevant date, redevelopment based on a surrogate scheme would not have been worthwhile; 5) nevertheless the surrogate scheme showed that the property had development potential albeit at some future date and that factor should be reflected in the amount of compensation and this was done by adopting C`s rates of interest when applied to a valuation on an existing use bases; 6) E`s contention that the rental values i