Extinguishment of Electricity Easement on our title

Discussion in 'Legal Issues' started by Lee01, 14th Nov, 2022.

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  1. Lee01

    Lee01 New Member

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    Location:
    Davidson, NSW
    We are in he process of having the electricity easement on our title extinguished by Ausgrid. It has been untouched for almost 40 years and will never be used, so approved. We have had a independent valuation of easement portion which is of course, on our title. The valuation given to us by he energy provider is way, way, above that of the experienced valuer we used. Does anyone know how the easement land is valued for the purpose of relinquishment back to the land owner?? We are in Sydney. Thanks
     
  2. Stoffo

    Stoffo Well-Known Member

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    So you purchased the property with the easement in place already ?
    Now the power company wants to do away with the easement and presumably want you to pay ? (Just because they no longer want to use the easement doesn't mean you should have to agree).
    The size of you land and use would come into it (As to how it was affected) as would the area of the easement.
    I would be trying to find out how much the original owner was compensated for the easement......
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    It's only worth as much as it has devalued your land compared to the value of similar blocks without the easement.

    You should be using your valuer for guidance and the value becomes a negotiation/agreement between valuers or it's off to mediation or the courts.

    As you are paying, you want to minimise the value - it's only land value not the $/m² rate that would apply across your entire block. Does the area relinquished add value ie would you otherwise be able to use (build) the portion of the land?

    Although not specifically used for the same purpose, the Just Terms Compensation Act provides the heads which would have been considered in the original compulsory acquisition if the land wasn't set aside in the subdivision and acquired for a specific purpose at some later date.
     
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  4. Lee01

    Lee01 New Member

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    Thank you for this reply. Yes, you seem to understand our situation. Yes, we do have plans for the easement section of the block and the utility already know this... which may explain the ridiculous amount of money they want from us. I am not sure what you mean by it being only worth 'land value' not the $/m² rate? The easement has not been touched in 48 years...could that be considered abandonment? Could we apply to the L& E court as way of moving forward? Many thanks
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    I wouldn't have considered abandonment however suggesting that the easement could be relinquished may be an option.

    What was the purpose of the easement and does it continue across the adjoining land? Is that usage now no longer required?

    Your solicitor and valuer can advise more fully on the options available to you.
     
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  6. Lee01

    Lee01 New Member

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    14th Nov, 2022
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    Location:
    Davidson, NSW
    We are dealing with an electricity easement on our land. They agreed that it wasn't needed in 2018 and again in March of this year when we brought the matter up again. We have a letter agreeing to relinquish it back to us...for market cost + we pay all legal fees. Yes, it continues next door to us where they had their portion relinquished years ago to build a garage and driveway out to the street. It also extends behind us into the streets below which have swimming pools and small outbuildings. We sought the advice of an a independent valuer (who works in this field) and he did our valuation and the utility has taken over six months to respond with their own valuation. We just want a "fair" cost and move on...
     
  7. Thomas Henderson

    Thomas Henderson New Member

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    Location:
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    Hi Lee01 - Hope all is well! We are in a similar situation where there is a c. 60 year old electricity easement that has never been used running along the boundary of our property. We would be keen to get this removed but are not sure how we would broach the conversation with Ausgrid. How did you go about approaching them? I would be keen for any details / information on the process that you have! Thanks