The Crown Estate Transfer Scheme 2017

Acquisition of third party rights by the Secretary of State

5.—(1) This paragraph applies where, after the Secretary of State has consulted with a person—

(a) that person refuses to assign or sell any right to the Secretary of State at market value; and

(b) the Secretary of State is of the view that, for reasons of defence or national security, there is an overriding public interest in the right being so assigned or sold.

(2) The Secretary of State may give notice to the person in writing stating—

(a) that the Secretary of State requires the right to be assigned or sold;

(b) the Secretary of State’s reasons for requiring the right to be so assigned or sold; and

(c) the terms and conditions on which the right is to be assigned or sold, including the date on which the assignation or sale is to occur (which must not be any earlier than one month after the day on which the notice is given).

(3) If the Secretary of State is of the view that, for reasons of defence or national security, there is an overriding public interest in the reasons mentioned in sub-paragraph (2)(b) not being made public—

(a) the Secretary of State must state that view in the notice, and

(b) sub-paragraph (2)(b) does not apply.

(4) The terms and conditions mentioned in sub-paragraph (2)(c) must provide that the Secretary of State is to pay market value for the right.

(5) Where notice is given under sub-paragraph (2), the right is deemed to be assigned or sold by the person on the terms and conditions specified in the notice.

(6) Sub-paragraph (5) is subject to any alternative agreement which the person and the Secretary of State may reach.