Issue - meetings

Freehold Enfranchisement purchase of 1-32 Wyatts Close Godalming and surrounding land GU7

Meeting: 01/11/2022 - Executive (Item 49)

49 Freehold Enfranchisement purchase of 1-32 Wyatts Close Godalming and surrounding land GU7 PDF 340 KB

To inform Members of the approach by National Corp Limited to sell the freehold of Wyatts Close Godalming to Waverley Borough Council (the Council).

The Council currently holds 1 to 32 Wyatts Close on a long leasehold within the housing revenue account. National Corp Limited are looking to divest the properties. Following negotiation an agreed sum has been reached to buy the properties and the wider site.

This report seeks to inform Members of the reason why acquisition is deemed appropriate and asks for authority to proceed with the purchase.

Recommendation

The February 2022 Council approved that the Executive has delegated authority for the financial year 2022/23 to bid, negotiate and complete on property acquisitions and investments with a total individual cost of up to £10m.

It is recommended:

2.1. that the Executive use their delegated authority to approve the purchase of the unencumbered freehold interest of 1 to 32 Wyatts Close and wider site for the total costs of £1,236,000 to be funded from the Housing Revenue Account.

2.2. that the Executive receive the background documents to the enfranchisement:

§ Opinion Letter from Bishop & Sewell LLP dated 28 September 2022 [Annexe One]

§ Valuation Report from Perry Hill dated 19 October 2022 [Annexe Two]

§ Settlement Agreement dated 28 September 2022 [Annexe Three]

§ Draft Agreement for Sale National Corp Limited (1) and Waverley Borough Council (2) [Annexe Four]

§ Transfer of Part (TP1) SY788504 £1,015,000 (freehold to houses at 1-32 Wyatts Close) [Annexe Five]

§ Transfer of Part (TP1) SY788504 £10,000 (roadways, verges and remainder of site) [Annexe Six]

2.3. and upon having considered matters in light of advice received from its advisors the Executive approves to:

i. ratify the settlement agreement entered into between National Corp Limited and the Council on 28 September 2022, and

ii. approve the budget virements schedule as at Annexe Seven

2.4. The Executive approve:

iii. the purchase of additional land;

iv. to exchange and complete the statutory contract for the purchase of the freehold to the houses in accordance with the provisions of the Leasehold Reform Act 1967; and

v. to authorise the Interim Executive Head of Legal and Democratic Services to enter into any documentation required to effect the transaction.

Both steps being simultaneous as set out in the draft Settlement Agreement.

Additional documents:

Decision:

RESOLVED

1. That the Executive use its delegated authority to approve the purchase of the unencumbered freehold interest of 1 to 32 Wyatts Close and wider site for the total costs of £1,236,000 to be funded from the Housing Revenue Account.

2. that the Executive receive the background documents to the enfranchisement:

§ Opinion Letter from Bishop & Sewell LLP dated 28 September 2022 [Annexe One]

§ Valuation Report from Perry Hill dated 19 October 2022 [Annexe Two]

§ Settlement Agreement dated 28 September 2022 [Annexe Three]

§ Draft Agreement for Sale National Corp Limited (1) and Waverley Borough Council (2) [Annexe Four]

§ Transfer of Part (TP1) SY788504 £1,015,000 (freehold to houses at 1-32 Wyatts Close) [Annexe Five]

§ Transfer of Part (TP1) SY788504 £10,000 (roadways, verges and remainder of site) [Annexe Six]

3. and upon having considered matters in light of advice received from its advisors the Executive approves to:

i ratify the settlement agreement entered into between National Corp Limited and the Council on 28 September 2022, and

ii approve the budget virements schedule as at Annexe Seven

4. The Executive approve:

iii the purchase of additional land;

iv to exchange and complete the statutory contract for the purchase of the freehold to the houses in accordance with the provisions of the Leasehold Reform Act 1967; and

v to authorise the Interim Executive Head of Legal and Democratic Services to enter into any documentation required to effect the transaction.

Both steps being simultaneous as set out in the draft Settlement Agreement.

Reason

The Council in securing the freehold of this site will consolidate its holding in this site, to provide social housing and secure control for the future and the ability of considering it in combination with nearby holdings.

[This decision was taken under the urgency procedures set out in Part 4.5 of the Council’s Constitution and is therefore not subject to call-in]

Minutes:

Councillor Paul Rivers, Co-Portfolio Holder for Housing (Operations) introduced the report which sought approval for the purchase of the freehold of 1-32 Wyatts Close, Godalming for the provision of secure social housing.

Councillor Heagin spoke in support of the recommendations, however expressed concern over the omissions in the governance route which had resulted in the item being taken under urgency procedures and highlighted the need for a more robust project and programme management system to avoid the situation arising again.

The Leader advised that the Executive had also raised concerns with officers over the governance route and was assured that those issues had now been addressed.