D. Compensation
Persons affected by land resumption will, subject to eligibility, be offered statutory compensation and an ex-gratia allowance.
Eligible persons include the former owner or persons having an interest in the land, such as the tenant.
Statutory compensation
Legal owners are entitled to the open market value of the resumed properties, assessed on a vacant possession basis or tenancy basis, as appropriate, on the date of reversion.
Legal tenants are entitled to the open market value, if any, of their interest in the domestic properties (for example, the value of an unexpired lease term subject to an existing rent below the prevailing open market rent).
Legal domestic occupiers (including owner-occupiers and tenants) are entitled to claim the losses and expenses reasonably incurred by them in moving from the resumed flat to a replacement flat due to the land resumption. Ex-gratia removal allowance will normally be offered to them in lieu of statutory compensation.
Ex-gratia allowance
Owner-occupiers may also receive an ex-gratia allowance, namely the Home Purchase Allowance (HPA).
The amount of HPA payable to individual owners is the difference between the value of a notional replacement flat (based on a seven-year-old flat of a size similar to the resumed flat and in the same locality) and the open market value of the resumed flat.
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