Appropriation of land for planning purposes

Produced in partnership with Kate Silverman of Clarke Willmott

Practice notes

Appropriation of land for planning purposes

Produced in partnership with Kate Silverman of Clarke Willmott

Practice notes

Local authorities who have acquired land for a statutory Purpose must hold that land for that purpose. They cannot use that land for a different purpose unless authorised to do by statute and can only change the purpose for which they hold land using statutory powers of Appropriation. The power to appropriate land for planning purposes in this context simply involves formally changing the purpose for which land is held, so that it is held for a planning purpose. It has been used for some time by local authorities and is often a purely administrative process. However, following Heaney (HRUK II (CHC) Limited v Heaney), there has been an increased awareness both among local authorities and developers about the benefits of appropriating land to planning purposes to then dispose of that land for development free from private rights over that land. This is particularly the case where land would otherwise be very difficult to develop. Appropriating land for planning purposes can in this context be a pre-condition to engaging section 203 of the Housing

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Kate Silverman

Clarke Willmott

Kate started her legal career at a local authority and subsequently has acted for RPs and local authorities throughout her career having worked for Devonshires and Lewis Silkin before joining TLT in 2009.

Not only does she have extensive experience in advising on major regeneration projects, the acquisition of land for the development of mixed use social housing, and extra care schemes for Registered Providers and other charities, Kate also acts for local authorities in connection with education, housing and leisure projects.

Kate acts for a number well known RPs, developers and local authorities up and down the country advising on site acquisition, large scale regeneration projects, complex stock rationalisation and local government law.

She is currently advising RP, local authority, private developer and charity clients on the acquisition and development of a range of mixed use residential/commercial sites and highly complex joint venture regeneration schemes.

Kate also has a specialist practice acting for local authorities and is currently acting for local authorities in connection with a housing regeneration scheme as well as the construction of a new cinema and library and new schools.

Jurisdiction(s):

United Kingdom

Key definition:

Appropriation definition

What does Appropriation mean?

Appropriation is a self-help enforcement remedy available to a secured party with security over financial collateral (ie cash, credit claims or financial instruments such as shares or other securities). It is available through the Financial Collateral Arrangements (No2) Regulations 2003, SI 2003/3226. It allows a secured party to take the financial collateral over which it has security as its own, or transfer it to a third party, as a means of enforcement without the need to take court action for foreclosure. It is common for security documentation over financial collateral to contain a clause granting a right of appropriation. The Loan Market Association's intercreditor agreement for leveraged acquisition finance transactions (the LMA intercreditor agreement) deals with the effects of appropriation on enforcement and the valuation of the financial collateral at appropriation. See clause 14 (Distressed Disposals and Appropriation) of the LMA intercreditor agreement.

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