2 - Disposal of 20 Thornhill, Johnstone - Report
Renfrewshire Council · 16 May 2023
Back to Communities and Housing Policy Board — 16 May 2023 and its agenda
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___________________________________________________________________ To: Communities and Housing Policy Board On: 16 May 2023 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: Disposal of property at 20 Thornhill, Johnstone Summary 1.1 The purpose of this report is to declare the property at 20 Thornhill, Johnstone, shown on the attached plan (E3321) as surplus to requirements. The property is held on the Housing Revenue Account and is located within a parade of seven shops with residential properties above. 2. Recommendations 2.1 It is recommended that the Board: 2.2 Declare the property located at 20 Thornhill, Johnstone shown on the attached plan, as surplus to requirements, with a view to disposing to the existing tenant. 2.3 Authorise the sale thereof to the existing tenant at 20 Thornhill, Johnstone on the provisional terms and conditions that have been agreed and are detailed in this report. 2.4 Authorise the Head of Corporate Governance to conclude the sale incorporating into the bargain such terms and conditions as may be deemed necessary to protect the Council’s interest. ___________________________________________________________________
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3. Background 3.1 The existing tenant has requested to purchase the property located at 20 Thornhill, Johnstone which they currently lease from the Council. The tenant has been in occupation for over 10 years. The current rent per annum is £9,200. 3.2 The tenant submitted an offer of £110k for the property however after consideration, this was below market value. After some negotiations, a provisional purchase price of £125k has been agreed. This is considered best value for the disposal of this property. 3.3 The property is held on the Housing Revenue Account and is located within a parade of seven shops with residential properties above. Of the seven shops, two have been disposed by the Council. The residential properties are a mix of Council and privately owned. 3.4 Head of Housing Services has confirmed that there would be no objection to this disposal and Legal Services have confirmed that there would be no title restrictions that would prevent the sale. 3.5 The purchaser will be liable to meet the Council’s reasonable professional and legal expenses incurred in processing this transaction. ___________________________________________________________________ 4. The following terms and conditions have provisionally been agreed with the purchaser The purchase price for the property shall be £125,000 exclusive of VAT The date of entry will be agreed by both parties but shall be within 6 months of the board approval. The property is to be sold in its current condition. The purchase price together with all other monies owed to Renfrewshire Council shall be paid in full by the date of entry. The disposal of this property will be subject to obtaining the necessary board approval. All and any other terms as considered necessary by Corporate Governance. ___________________________________________________________________ Implications of the Report 1. Financial – HRA will benefit from this capital receipt. 2. HR & Organisational Development – None. 3. Community Planning - None. 4. Legal – Conveyancing of disposal as required.
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5. Property/Assets – As per report. 6. Information Technology – None. 7. Equality & Human Rights (a) The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. Required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety – None. 9. Procurement – None. 10. Risk – None. 11. Privacy Impact – None. 12. Cosla Policy Position – Not Applicable. ___________________________________________________________________ Author: Louise Le Good Louise.legood@renfrewshire.gov.uk 07483 335 786
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