Decision details

Part 3, Schedule 3 - Responsibility for Executive Functions delegated to Officers paragraph 4.4 (1) - the Corporate Director has delegated authority to discharge executive functions within their respective service areas (Part 3.36 to Part 3.38). All delegations are subject to consultation where considered appropriate in the circumstances (paragraph 4.4 (2) - Part 3.39).

201 Cloes Lane was purchased under the Council’s Do it Yourself Shared Ownership Scheme on 7 May 1986 with a one per cent share in this property being simultaneously leased to Mr and Mrs Davies. The lease was granted for a term of 99 years. The remaining ninety nine per cent interest in this property was retained by the Council with a weekly rental payable in respect of this. On 3 February 2014, the property was effectively destroyed in a gas explosion and the lessees moved into private accommodation before being rehoused by the Council on 11 January 2016. Following the demolition of 201 Cloes Lane and clearance of the site, a new property was constructed which was completed in July 2017. At this time, discussions took place with the lessees who confirmed, in writing, that they were settled in their alternative accommodation and that they wished to sell their one per cent interest in 201 Cloes Lane to the Council. Their agreement was also obtained to 201 Cloes Lane being re-let prior to any sale agreement being finalised in respect of their interest in the property. This agreement was obtained on the basis that the Council would not make any claim for ground rent from the date of the agreement until finalisation of the legal transaction to transfer the leasehold share and that the Council was responsible for maintaining the new property until the proposed purchase completes. 201 Cloes Lane was valued as at 11 July 2018 and a provisional offer was made to Mr and Mrs Davies in respect of their share which has now been accepted.

Option 1 - The full market value of the property as at 11 July 2018 was assessed as being £195,000.00 making one per cent interest £1950.00 In view of the circumstances of the transaction the council are not seeking to recover the legal fees relating to the purchase directly from the lessee and these instead will be recovered from the appropriate Council budgets. The lessee has not sought to recover any legal costs from the Council. Option 2 - Not to purchase the one per cent interest. The implication of this would be that the legal position regarding ownership was unclear if Mr and Mrs Davies continued to live in their current accommodation and therefore a potential risk to the Council. Alternatively Mr and Mrs Davies would re-occupy 201 Cloes Lane which is less suitable for their needs and which they did not want to return to. However, the above was discounted because the former lessees have been provided with alternative rented accommodation by the Council and have confirmed their wish to sell their interest in 201 Cloes Lane. They have also given their agreement to the newly constructed property on this plot being re-let and a new tenancy was granted from 7 August 2017 to more suitable tenants.