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Crossrail paid us £800k too little for property, say Soho landlords
Sri Carmichael, Consumer Affairs Reporter19 Nov 2009
A retired couple today attacked Crossrail after they were forced to sell their Soho property to make way for the east-west London rail line.
Robert and Melanie Davis are landlords of a building in Dean Street, in Soho, due to be demolished.
They claim Crossrail offered them nearly £800,000 less than the market value of their building, which used to house a pizzeria and a film company, before taking possession of the property yesterday.
Mr Davis, 62, from Highgate, said they were offered just over £1.8 million - they claim it is worth £2.6 million.
They also claim to have lost their pensions as they had planned to use the property's rental income to finance their retirement.
Mr Davis told the Standard: "They haven't had our property valued by an independent agent but by TfL and the figure's ludicrously low. We're in a horrible limbo. I'm absolutely furious."
The couple, who claim about a dozen other landlords in Dean Street are in a similar position, said they were given five weeks' notice to vacate the building under a compulsory purchase order. They applied for an advanced compensation payment, but were sent the necessary forms only on Monday, two days before they had to move out.
The forms require a declaration from their solicitor and a signature from their bank manager. "These things take more than a day or two to organise." said Mr Davis. "They should have sorted this out weeks ago, it's outrageous."
Mr and Mrs Davis, 57, plan to lodge an appeal with the Lands Tribunal over the level of compensation. Mr Davis said: "We're not going to starve, but there are hundreds of people whose lives are going to be made a misery by Crossrail's heavy-handed tactics."
A Crossrail spokesman said: On taking possession of properties we pay the owners 90 per cent of our valuation. The remainder is paid following negotiation on receipt of a valid claim."
The rail link, due to open in 2017, will link Maidenhead in Berkshire to Shenfield in Essex, via Heathrow airport and central London. It will slash journey times across the capital.
Reader views (15)
Robert and Melanie,
You can instruct your own lawyer and valuer, and Crossrail are required to reimburse your reasonable costs for doing so for dealing with your compensation claim. It will then be up to the Lands Tribunal or whatever arbitrator you choose, to decide between your valuer or their valuer's figure, or somewhere in between. You are right that there is no concept of an independent valuer.
Crossrail must give you the advance payment within three months of you asking for it, or of them entering your land, whichever is later.
- Angus Walker, London, UK, 15/12/2009 14:59
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It is very sad to see all those Victorian buildings are being demolished in central London.Anyone agree with me?
- Ray Dumbri, London SW, 14/12/2009 18:47
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Interesting that so many people care and are quite ignorant of the legal implications.
The Secretary of State for Transport is in fact in breach of the Law by not making an advance payment on the due date.
We do not need sympathy, nor do we object to the Crossrail Scheme, only the
way that CPOs are implemented.
In fact we would have been pleased to accept an independant expert valuation, which is not and will not be an option available to us, even the Land Tribunal is merely an Arbitration and not an expert valuation.
Thousands of people across London, both Freeholders and Leaseholders will be adversely affected by CPO legislation, which is a huge injustice.
The system is in dire need of overhaul to enable those affected to continue their lives with as little disruption as possible, without affecting their livelihood and ensuring that they are "no worse off" as a result of a CPO.
- Robert And Melanie, London England, 20/11/2009 15:59
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The question is we hear from Robert and Melanie Davies but what about the harm and cost to residents who are poor and/or do not even have any legal advice or alternatives to fall back on unless you count the less than impartial Crossrail team. Crossrail continues to be Londoner's £16bn+ millstone thanks to Boris, Ken and the Labour party.
- Val Keller, London UK, 20/11/2009 15:41
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Its scary that a state organisation can just take ownership of your property, without an independant valuation.
And as for the project - has anyone considered what the case for crossrail looks like, now it turns out the banks aren't worth QUITE as much to the economy as we once thought...
- Geoffrey, UK, 19/11/2009 21:55
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In answer to the story and some of the comments:
It sounds as though Mr & Mrs Davis have not yet settled on the compensation figure - they have just been given 90% of Crossrail's estimate, which is part of the process and doesn't mean that it will be the final figure, which is likely to be higher.
There is no need to agree compensation before the property is handed over.
They can take their case to court (the Lands Tribunal) or could seek mediation, which would be cheaper. I know that Crossrail are prepared to accept mediation as I have acted for another property owner in the same area. The court or mediator would then arrive at a figure based on the valuation evidence of the two sides.
Mr & Mrs Davis' property is being acquired for one of the Crossrail stations - Tottenham Court Road (West).
Crossrail is not a private organisation - it is owned by Transport for London - and is authorised to take the land via the Crossrail Act 2008.
- Angus Walker, London, UK, 19/11/2009 14:51
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if they are that gullible how did they make enough to buy the building in the first place ?
- Squiz, Islington, 19/11/2009 14:10
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I am bit fed up with all this negativity around Crossrail.
This is a great project that will really improve the transport infrastructure of London, and I’m sorry but you can’t make an omelette without breaking eggs. Why can’t we hear from the 1000’s of Soho businesses that will benefit from the improved transport in this area? The new entrance in Dean street will really open up this area of Soho, increase the amounts of people coming through, increase their profit and the value of their buildings! Personally I cant wait for the new ticket hall as it will make my journey home much simpler.
I’m sorry that this couple are having problems, but this project has been coming for years and people whose property is affected have known for a lot longer than 5 weeks that this was coming so should have been better prepared. Lost pensions?! I’m not a financial advisor but I would suggest they look at investing some of the 1.8 million they have just got! If they are unhappy there seems to be an appeals process which they should use.
So overall, bravo to Crossrail and TfL for being brave and creating a project that will improve London and the millions of people who use our great city
- Clive, Camberwell, London, 19/11/2009 13:23
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I could understand it if they were an average-earnings income couple running a small business - 1.8 million - few will ever see that amount of money in a lifetime. And it is not envy talking here - it is just that it is difficult to expect sympathy from most readers over a haggle between an enormous sum of money and a larger one.
A lot of whinging about Crossrail. When it is up and running (okay, IF it is up and running), like with the Victoria and Jubilee Lines, and Thameslink, most commuters will wonder what we did without it. Many will no longer have to switch to the tube at termini hellholes like Liverpool Street or Paddington. To not have to brave the Circle Line at all, or to try and cram onto the Central Line platforms at Tottenham Court Road. To not have to use Bank Station!!! Gotta look forward to it, surely!
- David, N10, 19/11/2009 13:10
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In a CPO situation professional fees are paid for by the acquiring authority. They should buy a book by Barry Denyer Green on the subject to get clued up.
- Jack Spratt, Richmond, Surrey, 19/11/2009 11:58
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And they can't live comfortably on £1.8m?
Shame about their restaurant though - it was a nice place to eat. Although why it needs to be demolished to accommodate an underground train track is beyond me.
- Nobby Clark, Perth, the Scottish one, 19/11/2009 11:43
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They own a building they reckon is worth £2.6m but apparently didn't engage a professional valuer to negotiate a settlement for them? Stupid or what? Apart from anything else, they'd be entitled to add his fee to the compulsory purchase settlement.
- Tonyb, Melbourne, Australia, 19/11/2009 11:19
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I am afraid that some people are still living in cloud cuckoo land and do not realise that property values have crashed. As a public organisation TfL would be heavily criticised if they paid over the odds for property. I assume that Mr and Mrs Davis have another home in Highgate so the £1.8m should easily ensure that they "do not starve" for a few years to come even without any rental income. Perhaps they should assist their former tenants.
- Rodger, Hackney, 19/11/2009 11:00
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Sorry, I cannot feel too much sympathy for these two whinging hard done by millionaires.
- Jacob, Canterbury Kent, 19/11/2009 10:56
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How is it that a private organisation can do a compulsory purchase, I could understand if it was the Highways Agency, although they are going to the Lands tribunal and if it was me and I had the money start the ball rolling with a Judicial Review (which they would hate)as to the legality of their actions, and once started get a restraining order stopping any further legal movement on the property pending the decision of the Judicial review, this would put a spanner in the works of such magnitude that a revised offer would shortly follow.
- Ann Other, UK, 19/11/2009 10:25
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