Democracy Spraffa

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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