Could a Loss of Light Claim Be Worth Compensation?
What drives the value of a rights of light claim, why every case is different, and what to be cautious of.
How Compensation Is Calculated
There is no fixed formula for calculating compensation in rights of light claims. Courts assess damages on a fact-specific basis, and the range of outcomes across different cases is wide.
The most common approach is to assess what a reasonable buyer would have paid to acquire a release of the right before the development commenced — sometimes called a "negotiating damages" basis. This can involve a notional negotiation reflecting a share of the development profit, which can be substantial for large commercial schemes.
What Affects Claim Value?
Negotiation vs Litigation
The majority of rights of light claims are resolved by negotiation before reaching court. The prospect of an injunction gives claimants with strong cases significant leverage, particularly before or during construction.
Once a development is substantially complete, courts are generally less willing to grant injunctions and damages become the primary remedy. This is why early action is important.
As with any legal claim, it's important to follow professional advice to ensure you remain fully protected throughout the process.
Compensation in rights of light cases is typically assessed by reference to what a reasonable buyer would have paid to acquire a release of the right — not simply the diminution in property value.