Decision details

To consider options for the future use of the Council-owned building.

The Housing Portfolio Holder presented a report on the proposed disposal of 10, Newmans Lane in Loughton.

The Portfolio Holder reported that the Council’s property at 10 Newmans Lane, Loughton was suffering with major structural defects brought about by tree root damage. The Structural Engineer appointed to give advice to the Council had recommended that the property would need to be either underpinned or demolished and subsequently re-built. An offer had been received to purchase the Council’s property at 10 Newmans Lane based initially on an Option Agreement in its current condition (Subject To Contract), with the balance payable within twelve months should the sale proceed. This was recommended for approval along with the proposal for the proceeds of the sale to be used for the Council’s Housebuilding Programme.

Decision:

(1)        That an Option Agreement for the freehold purchase of the 3-bedroom Council-house at 10 Newmans Lane, Loughton be entered into by the Council with Burney (Loughton) Ltd, based on a non-refundable deposit of £10,000;

(2)        That should the Option be exercised by Burney (Loughton) Ltd within 12 months of the agreement being signed, the outright sale of 10 Newmans Lane, Loughton be agreed in the sum of the balance of £290,000, totalling £300,000, payable to the Council; and

(3)        That the £300,000 received for the sale of 10 Newmans Lane, Loughton be allocated to the future Council House-Building Programme.

Reasons for Decision:

To comply with the Council’s Financial Regulations.

Other Options Considered and Rejected:

To not accept the offer and undertake major structural repairs/re-build and re-let the property to an applicant on the Council’s Housing Waiting List.

To market and sell the property in order to obtain a better return.

To leave the property empty and wait until the lease on the adjacent land came to an end, and then redevelop the whole site at that time.