Issue - meetings

Old Manor House, East Horsley, KT24 6RN

Meeting: 22/02/2024 - Executive (Item 60)

60 Freehold Disposal of Old Manor House, East Horsley pdf icon PDF 223 KB

Additional documents:

Decision:

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.

Minutes:

Old Manor House comprised a large, detached Grade II Listed building providing eight residential flats that were previously leased to persons of state pensionable age. The building had been unoccupied for some time and required complete refurbishment and modernisation, including fabric replacement and renewal. The capital cost to refurbish the property to bring it into occupational use for housing was significant and was further exacerbated by the necessary reconfiguration of the existing internal layout and the energy performance upgrades required.

The Lead Councillor for Finance and Property introduced the item. The asset was held in the General Fund. Occupation of the property was not possible in its current condition. In view of the budgetary impact to the council, Housing Services had determined it was not suitable for development and surplus to support their service. With all alternative options for property explored, it was recommended the Executive agree to a freehold disposal of the property on the open market.

It was confirmed that access to Lovelace Cottages would have to be safeguarded by any future owner of Old Manor House.

The Executive noted that despite its commitment to providing housing for local people, the extent of the dilapidation of the property and the necessary reconfiguration to bring it back to use would not be the best use of council resources.  It was explained there were significant damp issues, rewiring was needed and the internal reconfiguration for a listed building would be complex and costly. It was suggested that given the building’s protected status, disposal to a new owner to bring the building back into habitational use would be the best option for the community and for the building itself as a local heritage asset.

The Executive heard that to delay a decision in regard to the future of the building would result in a greater decline of its condition and increased future costs, therefore, it was

RESOLVED:

That the Executive Head for Assets and Property be authorised 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.