Decision details

Disposal of the freehold interest in Old Manor House, East Horsley and generate a capital receipt to go to the General Fund.

Decision:

The Executive authorised the Executive Head for Assets and Property to auction sale the property or negotiate terms for a disposal at best consideration on the open market via private treaty, and to enter into all relevant legal documentation required to complete the transaction of the Council owned land comprising Old Manor House in return for a capital receipt.

Reason(s):

To generate a capital receipt and remove void property costs from future revenue budgets.

Other options considered and rejected by the Executive:

1          Do nothing – the Council retains the land and property in its current state. The Council will continue to incur revenue costs associated with owning and managing a large vacant property. The value of the site may depreciate as it continues to fall into disrepair.

2          Sell the long leases – the Council sells the eight flats individually on eight long leases for 125 years to persons of state pensionable age at 50% less than the market value plus a further reduction to reflect the inhabitable state of repair.

3          Transfer the asset to the HRA – for use within the HRA housing programme. The HRA has reviewed and assessed the property and has deemed it unsuitable for HRA accommodation. The associated costs to undertake the renovation, internal reconfiguration and energy performance upgrades do not make the property viable for the HRA and its ongoing housing programme.

4          Submit a planning application, develop the site and sell – Due to a lack of internal resource and the lengthy planning application process due to its Grade II Listed status, the site is not considered suitable for development by the General Fund. Furthermore, the General Fund is not in a financial position to undertake a redevelopment to put the property into a habitable state of repair for occupational use.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.