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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 04/04/2006
Proposal to Dispose of Two Dwelling Houses


(EXEMPT) ANNEXE
TO APPENDIX N
Waverley Borough Council

EXECUTIVE – 4th APRIL 2006
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Title:
PROPOSAL TO DISPOSE OF TWO DWELLING HOUSES

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Note pursuant to Section 100B(5) of the Local Government Act 1972

This annexe contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 3 of the revised Part 1 of Schedule 12A to the Local Government Act 1972, namely:-

Information relating to the financial or business affairs of any particular person (including the authority holding that information).
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Property One

1. The first property is situated on the Shepherd and Flock Roundabout in Farnham and has recently become vacant. It is a Victorian house of some character, which was converted into two separate flats some years ago. A location plan is attached at Annexe 1 to this (Exempt) Annexe.

2. Were the Council minded to bring it up to the Decent Homes Standard and re-let it, considerable works would be required. In addition to these works, other expenditure will be required particularly relating to potential replacement and/or repair of leaded windows. An estimate has recently been received to replace one unit at a cost of £2,735 and so, in order to replace all windows there could be a cost of up to £20,000 for windows alone. There are eight decorative rendered plaques, one of which is missing and some damaged. To replace these plaques will cost in the order of £500 each and would require a specialist historical repairs contractor to undertake this work.

3. The two flats have been used as temporary accommodation for homeless households and have therefore received heavy wear and tear over the years. The kitchens and bathrooms are approximately ten years old, but because of the harder than usual usage, they need to be replaced sooner rather than later. To replace two kitchens and two bathrooms, will cost in the order of £15,000.

4. The Council recently agreed that void Council properties that needed more than £20,000 of works done to them to bring up to lettable standard could be transferred to a registered social landlord. However, for the following reasons, it is suggested that the Council should dispose of this property on the open market because in the past, because of its perceived ‘isolated’ location, it has not always been easy to let. It is an individual character property, with the potential to generate a reasonable capital receipt for the Council.

5. Officers believe that in this case, there is merit in proposing an open market disposal of this property because of the combination of factors viz:

· cost of bringing the property up the Decent Homes Standard;
· on-going maintenance costs of an old individual building, which contains unusual features;
· its relatively isolated location;
· the potential capital receipt that would arise from open market sale;
· the ability to invest the capital receipt in the Decent Homes Standard in Waverley’s retained housing stock.

6. The open market value is difficult to assess particularly because of its location adjacent to the A31, and also because of its poor condition with associated the expense to bring it into good order. These factors will affect market interest in the property. It is therefore suggested that the property be disposed of on the open market by a method to be determined by the Property and Development Manager.

Property Two

7. The Council owns a small number of individual properties across the Borough and two of these are situated in the Borough of Guildford, in the Parish of Shalford, which were passed to Waverley Borough Council from the Water Authority. Formerly, the properties were used as tied accommodation for employees of the Water Authority, though this has not been the case for some time.

8. The vacant property is a semi-detached 2-bedroom house situated at Trunley Heath, Shalford. A location plan is attached at Annexe 2 to this (Exempt) Annexe.

9. The Council has recently resolved to dispose of up to twenty expensive to repair void properties each year to a registered social landlord. This property would ordinarily fall into this category as it needs significant investment to bring it up to a lettable standard – some £50,000, and are detailed in the following table:

1
Replace damp affected living room floor.
£8000
2
Hack off & replaster all internal walls.
£5500
3
Replace all ceilings.
£2000
4
Renew floorboards to bedroom 2.
£750
5
Provide passive ventilation to all rooms.
£700
6
Minor structural repairs.
£3000
7
Replace all internal joinery.
£5000
8
Kitchen & bathroom to D.H. standards.
£6000
9
Provide electric storage heating.
£2500
10
Redecoration.
£4000
11
Relocate staircase & associated works.
£5000
12
Construct firebreak in loftspace.
£2000
13
Replace rotted fascias to extension.
£1000
14
Localised brickwork repairs.
£1000
15
Repairs to rear mono-pitched roof.
£1000
16
Timber treatment & damp-proof works.
£2000
TOTAL
£49,450

10. The property is in a relatively ‘isolated’ location on marshland, situated at the end of a private road owned by Guildford Borough Council. The property has no mains drainage. It is not in a location that would ordinarily be considered ‘sustainable’ in terms of easy access to services and facilities. Given its location and rural outlook, it is potentially attractive to purchasers on the open market.

11. The open market value is difficult to assess because of the particular circumstances associated with the property, namely its poor condition and the expense to bring it into good order, together with its isolated position. These factors will affect market interest in the property. It is therefore suggested that the property be disposed of on the open market by a method to be determined by the Property and Development Manager.


Comms/exec/2005-06/328