Decision

To complete the Freehold sale of agricultural land at Charmandean Quarry, Off Charmandean Lane, Worthing, BN14 9NN, HM Land Registry Title WSX292097.

Formerly a disused chalk pit, the land comprises a total area of 0.77 hectares or 1.91 acres and includes a farmyard, barn and stable buildings. The purchaser is the current tenant, who has occupied on a Farm Business Tenancy for a period of 10 years from 5 October 2018. The proposal is to sell the land to the tenant for £330,000 (Three Hundred and Thirty Thousand Pounds), subject to the existing lease. There are no rights of way across the land to be sold.

Per Section 123 of the Local Government Act 1972, council officers have ensured best consideration is achieved for the transfer by obtaining an independent third-party valuation by an agricultural specialist who has complied with RICS ‘Red Book’ Valuation standards. This valuation was refreshed to confirm best consideration is still achieved.

It is proposed the transfer is completed at the earliest opportunity.

Reasons for the decision

In accordance with the Council’s published ‘Disposals Strategy and Process’, this parcel of land was identified as suitable for disposal as it is low income producing, has no community or social value that warrants the Council owning it, and there is no reasonable prospect of the land being developed for emergency or temporary accommodation or social housing (due to its origin as a quarry and unsuitable access).

The Council’s legal officers have confirmed there are no restrictions that create a legal impediment to the sale. Furthermore, there were no other bona fide internal uses identified, no community or environmental benefit to retaining the land, and no strategic or council objective that would impede the sale.

Alternative options considered

As follows:

1.    Continue to let the land. This does not comply with the Council’s Disposal Strategy as the site offers no long term value to the organisation or provide an exceptional upside to help support council services other than a modest income eclipsed by the potential for a freehold transfer.

2.    Sell the land with vacant possession. The Council would need to wait until 2028 for the expiry of the Farm Business Tenancy. “A bird in the hand principle” applies: The anticipated sale price with vacant possession may or may not decline over the next 2 years. Capital now is worth more to the Council than the prospect of obtaining a speculative amount in the future.

3.    Market the land more widely and sell the land to another purchaser, subject to the existing Farm Business Tenancy. This would generate less return and create uncertainty for our tenant.