Price for CPO Land

Red Kev

I have a 40 acre farm where a road will be built through at some stage in the future. The farm is currently leased out and will be for the foreseeable future as I will never farm it myself. The road scheme is presently suspended due to lack of funds and there is a 500m exclusion zone from the road at the front of the farm going most of the way down the land (land is ca. 650m x 300m). The road will definitely cut through here, we just don't know where, probably in the middle as the road has a number of houses along it and I doubt that they will go through the expense of buying everyone out. There is also a cottage on it that was lived in until 2003 and I'd like to keep this and renovate it in the near future, providing it isn't bulldozed for the road.

As I intend selling the land in the near future anyway, I'd like a bit of a guide on this: Generally how much do they pay for land bought up by CPO as a rough percentage of what it is worth? And as the farm will be split in two they will have to give some sort of access to the other side, so how is the "inconvenience money" worked out?

I understand that a chartered surveyor is the way to go when the land is eventually to be bought by the government, but i just need a bit of a guide on this if anyone has some info or experience of CPO's before.

I'll just point out that the land is isolated, a few miles from a couple of small villages so there is no demand for it for development, it is just farmland. I'm not objecting to it either, as most people are in favour of it. Thanks for any advice.

Heraldoffreeent

If I were you I'd contact the local IFA, in most of these schemes they have organised a QS firm to act on behalf of all the farmers concerned, otherwise they may have a list of them to select from. These guys would give you heads up on expected prices, even if you decide to sell on before the CPO's are issued.

Red Kev

The scheme isn't so far that they have decided to buy land or build it yet, it's been suspended by the NRA for the time being, I intend selling the farm on at some stage, whether before or after the road is built is another thing.

grazeaway

If they decide to straight through the farm insist that an under pass is put in to ensure the land is still connected. Otherwise you'll end up having the land split.

Heraldoffreeent

Have they decided the route? Drilled test holes?

Brian2850

Essentially you will get paid the market value of the land taken plus an amount for Severence (splitting your land in two) and Injurious affection (loss on your farming business). The key point in the whole process is the date of the notice to treat. That fixes your valuation date. If you we're lucky enough that NTT was served in 2006 for example, you would be entitled to 2006 values.

The local authority will appointed their own surveyor as well so expect to be challenged on your values. Tip, use a chartered GP surveyor as opposed to a quantity surveyor.

Red Kev

grazeaway wrote: »

If they decide to straight through the farm insist that an under pass is put in to ensure the land is still connected. Otherwise you'll end up having the land split.

Doubt they'll do that, they built a part of the route a couple of years ago and all land was split. Thanks for the advice anyway.

Heraldoffreeent wrote: »

Have they decided the route? Drilled test holes?

They've decided that it'll go through our corridor, the exact route (i.e. how many metres from the boreen) hasn't been decided. Test holes were drilled in 2009.

Red Kev

Brian2850 wrote: »

Essentially you will get paid the market value of the land taken plus an amount for Severence (splitting your land in two) and Injurious affection (loss on your farming business). T.

Just as a matter of intersest, does anyone know how this is calculated?

Heraldoffreeent

Red Kev wrote: »

Doubt they'll do that, they built a part of the route a couple of years ago and all land was split. Thanks for the advice anyway.



They've decided that it'll go through our corridor, the exact route (i.e. how many metres from the boreen) hasn't been decided. Test holes were drilled in 2009.

If the test holes were dug, then the IFA would have been involved with the farmers affected. Contact them.

Red Kev wrote: »

Just as a matter of intersest, does anyone know how this is calculated?

I would guesstimate 2.5 times the ag value of the land would be the all in CPO price. But I may be wrong.

delaval

Be very careful here. Your tennant is entitled to compensation from the NRA if his head is in any way screwed on.

Brian2850

Red Kev wrote: »

Just as a matter of intersest, does anyone know how this is calculated?

It is very arbitrary.....strictly speaking, it is meant to be the loss in value of the entire farm by splitting the land in 2. Say the land is worth 10 an acre beforehand, you could maybe argue that the piece separated from the main farm is now only worth 5 an acre and the main holding is now worth 9 an acre. Your argument hinges on what level of sales there have been around you and how they support or contradict your opinion of value.

For the purpose of running some numbers in your head, assume that the bulk of your claim will be the amount of land taken at the going rate per acre. The other headings (generally speaking) will not be as large. If you post amount of land involved, I'll give you a rough idea

Red Kev

Heraldoffreeent wrote: »

If the test holes were dug, then the IFA would have been involved with the farmers affected. Contact them.

No. I dealt with them myself, land wasn't leased at the time.

Brian2850 wrote: »

It is very arbitrary.....strictly speaking, it is meant to be the loss in value of the entire farm by splitting the land in 2. Say the land is worth 10 an acre beforehand, you could maybe argue that the piece separated from the main farm is now only worth 5 an acre and the main holding is now worth 9 an acre. Your argument hinges on what level of sales there have been around you and how they support or contradict your opinion of value.

For the purpose of running some numbers in your head, assume that the bulk of your claim will be the amount of land taken at the going rate per acre. The other headings (generally speaking) will not be as large. If you post amount of land involved, I'll give you a rough idea

Land is ca. 300m wide, road will be a standard N road, might be cut through a hill, so probably 30 X 300m at the most, 4 acres I'd say as a round figure. They'll probably split the land roughly in the middle so ca. 20 acres at the front and ca.20 will be left at the back. It's worth an average of €7000 an acre.

Heraldoffreeent

Red Kev wrote: »

No. I dealt with them myself, land wasn't leased at the time. .

Thats not what I mean though, at the time that all that was happening, the IFA would simultaneously be working with farmers to help them get the best deal. they would have organised local meetings in the villages and towns along the route and they would have introduced the Farmers to a firm of surveyors and in addition, you should have found that you were being contacted by firms of "valuers" touting for the business of representing you to the NRA/ CC etc.
I know this because I've been there, and similar to yourself, the project is also stalled.

Red Kev wrote: »

Land is ca. 300m wide, road will be a standard N road, might be cut through a hill, so probably 30 X 300m at the most, 4 acres I'd say as a round figure. They'll probably split the land roughly in the middle so ca. 20 acres at the front and ca.20 will be left at the back. It's worth an average of €7000 an acre.

You'ld have to allow for access roads and drainage traps, or what ever they're called too. Really without having someone familiar with the proposed road and the area in question, you won't get a good enough indication here.

In my situation, the final proposal was very different from the first route proposed. for example, on first inspection it looked like i'd be left with two sections, one of nearly 4 acres and one of nearly five seperated by the road, the last proposal now leaves me with one part amounting to one acre and the other plot amounting to over six. Obviously a one acre standalone plot is not very usefull, and its surrounded by the neighbouring farm, which reduces the market, were I to sell it, so stuff like that needs to be factored in.As I said, a rough guide is 2.5 times Agr value all in, but subject to the specific requirements of the site.

Red Kev

OK, thanks a lot for all the replies, something to work on!