SCHEDULE 5Environmental permits

PART 2Compensation in relation to conditions affecting certain interests in land

Payment of compensation7

1

Compensation in respect of an interest which is subject to a mortgage must be paid—

a

to the mortgagee, or

b

if there is more than one mortgagee, to the first mortgagee,

and must, in either case, be applied by the mortgagee as if it were proceeds of sale.

2

Amounts of compensation determined under this Part are payable—

a

where the operator and either the grantor or mortgagee agree that a single payment is to be made on a specified date, on that date;

b

where the operator and either the grantor or mortgagee agree that payment is to be made in instalments at different dates, on the date agreed as regards each instalment;

c

in any other case, subject to any direction of the Upper Tribunal or the court, as soon as reasonably practicable after the amount of the compensation has been determined.

3

Any question of the application of paragraph 6(3) or dispute as to the amount of compensation must be referred to and determined by the Upper Tribunal.

4

In relation to the determination of such a question, section 4 of the Land Compensation Act 1961 M1 applies as if the reference in section 4(A1) of that Act to section 1 of that Act M2 were a reference to sub-paragraph (3) of this paragraph.