Highways Agency

A Guide to How Part 1 Claims are Processed by the Highways Agency

The Claims Process

• On receipt of your claim, we check the application form you have completed to ensure that all the required information has been provided. In particular it is required that you own the property before the new or improved road is opened and that you also own it on the day you make your claim.
   
• If our checks confirm that the claim is valid, it is passed to the Agency's Valuer, who negotiates claims on behalf of the Highways Agency. The Valuer will contact you or your agent, if you have employed one, as soon as possible to negotiate your claim and, if appropriate, agree the amount of compensation. This can take several months depending on the number of claims received in respect of the new road scheme.
   
• If you have any queries about the progress of your claim whilst the negotiations are ongoing, you should in the first instance, discuss them with your agent, if you have employed one, or the Valuer if you are negotiating your own claim. However, if you wish to speak to the Highways Agency directly, the person dealing with your claimcan be contacted via the details shown on the correspondence that has been sent to you.

• Once the negotiations have been completed, the Valuer will report back to the Highways Agency to advise that compensation has been agreed, or that no compensation is payable.
   
• If compensation is payable, where the property is subject to a mortgage, we will write to your mortgage provider to ask if the compensation can be paid to you. However, the mortgage provider has first refusal to receive the compensation to be set against your mortgage account. If your mortgage provider agrees to waive their rights, then the compensation will be paid directly to you.
   
• If there is no mortgage, you will be required to provide proof of your ownership of the property (Proof of Title) by sending us a letter from whoever holds your deeds confirming that you owned the property on the appropriate date. We will also require written confirmation that there is no mortgage or any other legal charge on the property.
   
• As soon as we have received satisfactory Proof of Title, we will write to you again with an Acceptance and Discharge form. Everyone who is entitled to the compensation must sign the form, in the presence of a witness, to confirm that the compensation agreed is in full and final settlement of your Part I claim. One copy of the Acceptance and Discharge form is returned to the Agency and the other can be kept for your records.
   
• On receipt of your Acceptance and Discharge form arrangements will be made for your compensation to be paid. The Highways Agency aims to pay all Part I claims within 40 days from the receipt of the Acceptance and Discharge form. However, on occasions the payment may be delayed and you should not make any financial commitment in anticipation of receiving the compensation.
   
• The Highways Agency will pay interest at Statutory Rates on your compensation from the date your claim is received, or from the first claim date, whichever is the later. The interest will be paid gross, that is without deduction of Income Tax. You are obliged by law to notify your inspector of Taxes in your tax return, or otherwise, of the amount of this interest as it will form part of your income for the tax year in which you receive it. The amount of Income Tax due will depend on your personal circumstances. You should note that, in common with other payers of interest, we are required to make a return to the Inland Revenue when such payments are made. The return shows the amounts of interest paid and the names and addresses of the individuals to whom they have been made.
   
• If you have employed an agent and your claim is successful then the Agency will also pay their reasonable costs, as agreed by the Valuer. If it has been necessary to use a Solicitor to provide Proof of Title, their reasonable costs will also be paid. Your Solicitor should invoice the Agency direct and payment will be made after your compensation has been paid. However, no fees will be paid in respect of unsuccessful claims.
   
• If there is no mortgage, and we have been unable to confirm proof of your ownership with the Land Registry, we will write to you asking for a letter from whoever holds your deeds confirming that you owned the property on the appropriate date. We will require written confirmation that there is no mortgage or other legal charge on the property.
• If you have any general queries regarding the claim process and require further assistance please contact the National Part 1 Claims Team.