This is the value, which a person having an interest in land is ready to pay in order to change, for example, the position of an improvement, which could have hitherto been of negative effect to his/her living but positive to others; or a generally negative effect to the whole of the vicinity. It is a value/tax whose revenue is negligible but which acts as an inconvenience to the tax payer.
Many things may constitute nuisance. According to Thorncroft (1976), the most favoured residential positions are set in pleasant natural surroundings, preferably somewhat sloping and wooded rather than flat and uninterestingly bare. Most essential, however, is the exclusion of noise, unsightliness, development or dust that might destroy amenities. Obviously situations close to heavy industry, gas works, sewerage, farms and cemeteries are undesirable”. These among others, are things which people consider (i.e. which could affect the health and emotion) before they can view an environment as being conducive and these all have a bearing on value.
Nuisance value as a price paid to relieve an objectionable condition, usually comes in when a condition deterrent to a particular land-use sets in, which is not acceptable to the neighbouring land owners or occupiers or local planning authority. At times, circumstances may result in change of use during the course of a term. This change may be so gradual that effective action to prevent it, if necessary, becomes impossible. Usually many changes are slight or in tune with economic conditions so that the estate in question may not suffer in character or value but may cause harmful effects to adjacent properties. There will therefore be the need to pay a value to compensate for the nuisance, which is now coming from the subject property.
Easement, though a right in respect of one property for the benefit of another, can constitute a nuisance. The existence of easements can produce management difficulties where they are unalterable and it is essential to ensure as far as possible, that such rights can be terminated or modified should the needs of the estate burdened with them require it (Thorncroft, 1976). Of course, this will lead to quantifying the easement monetarily and pay for it in order to release the estate of such encumbrances.
Compensation also can be viewed as a form of nuisance value. Compensation emanated from the doctrine of ‘eminent domain’. Ifediora (1993) defines eminent domain as the right reserved by governments to take by compulsory purchase, private land for public use. For example, a land for farming finding itself on the path of a road construction may be taken over by the constructing government for overriding public interest, i.e. a use enjoyable by all and sundry. In Britain, compensation is based on the open market value, including the value attributable to development potential for any purpose for which planning permission might be obtained (Thorncroft, 1976). However in Nigeria, compensation is according to the Land Use Act, Sections 29, 38 and 33.
References
Douglas Greenwald and Associates (1983). The McGraw Hill dictionary of modern economics: A hand book of terms and organisations. New York: McGraw Hill Book Company.
Ifediora, G.S.A. (1993). Appraisal framework. Enugu, Nigeria: Iwuba Ifediora and Associates.
The Federal Government of Nigeria (1978). The Land Use Decree
Thorncroft, M. (1976). Principle of estate management. London: Estate Gazette Ltd.
