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Kolbe House Society v Department of Transport

Language: English Series: Property and Compensation Reports ; (1994) 68 PCR 569-590(22)Publication details: 1994Subject(s): Summary: LT 11 July 1994. The property in question was a home, run by a charity for the relief of people from eastern Europe, which was compulsorily purchased. K contended that the compensation should be assessed on the cost of equivalent reinstatement as set out under Land Compensation Act 1961 s5 rule 5, as there would be no comparables and the aim was to reinstate the home elsewhere. The acquiring authority argued for an assessment on a market value basis contending that the property was being used as a old folks home. Held that the use was not that of a residential care home available to a wide range of people from the community at large, so there was no proven demand or market for it; it should be valued by the equivilent reinstatement method.
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Law report London Journal article ABS52098 (Browse shelf(Opens below)) 1 Available 60473-1001

LT 11 July 1994. The property in question was a home, run by a charity for the relief of people from eastern Europe, which was compulsorily purchased. K contended that the compensation should be assessed on the cost of equivalent reinstatement as set out under Land Compensation Act 1961 s5 rule 5, as there would be no comparables and the aim was to reinstate the home elsewhere. The acquiring authority argued for an assessment on a market value basis contending that the property was being used as a old folks home. Held that the use was not that of a residential care home available to a wide range of people from the community at large, so there was no proven demand or market for it; it should be valued by the equivilent reinstatement method.