Purpose

Following the above Cabinet Member Approval (25/6/2024) key
actions and processes have been progressed as set out in the below
table

 

Key
Points

(1)  
 

Property Consultancy Auction
Advice
The
County Council’s property auction consultants (Lambert Smith
Hampton) have assessed relevant properties for intended auction by
July 2025. This is summarised in its master-schedule (as set out
Appendix 1)which provides its summary recommendation
for:
o   
Relevant auction date
o   
‘Reserve Pricing’ level per
auction lot
o   
‘Overage’ and
‘Clawback’ covenant provisions as appropriate to
protect the County Council’s financial and reputational
position in case of any onward sale and planning
gain
Further detail is set out in Lambert Smith
Hampton’s advisory reports for each individual property
– as per the electronic links for each of those summary
reports (as also provided in Appendix 2); if
deemed appropriate by the
County Council any auction lot can deferred to a later auction date
– as Lambert Smith Hampton can organise such auctions on a
monthly cycle basis.
 

(2)

External Legal Support
The
County Council’s appointed solicitor (Irwin Mitchell) has
undertaken requisite pre-auction legal work - this
comprises:
o   
Review of the County Council’s
Legal Deed Packet and commissioning of Local Searches and other
searches to form part of the ‘Legal Auction Sale
Pack’.
o   
Preparation of CPSE replies &
drafting of Transfer Deeds, Special Conditions and relevant
‘Clawback’ and ‘Overage covenant conditions - as
part of the required contractual ‘Legal Auction Sales
Pack’ information.  

(3)  
 

Procedures following acceptance of auction
bid
o   
Potential bidders are required to pay up
to a £5,000 deposit and provide ‘Anti Money
Laundering’ identification to enable bidding at the online
auction.
 
o   
At the end of the auction, once bidding
has ceased and the electronic ‘gavel’ has fallen to the
highest successful party (at or above the reserve), this
constitutes exchange of contracts and a binding contract is entered
into; at that point Lambert Smith Hampton will sign the Memorandum
of Auction Sale on behalf of the successful bidder, and a copy will
be sent to SCC Legal Services who will then need to formally sign
recording the terms of the sale.
 
o   
A successful purchaser then has two
working days to top up the deposit monies to 10% of auction sale
price. LSH will then transfer the full deposit monies to Irwin
Mitchell to hold pending sale contract
completion.
 
o   
Payment of balance of monies to then be
paid upon binding contract completion which is set for the date
twenty working days after the contract date (or earlier by mutual
agreement); Irwin Mitchell will arrange for the documentation to be
duly sealed by SCC Legal Services to enable contract completion,
with subsequent transfer of such funds to the County
Council.
 

(4)  
 

Relevant properties for auction by July
2024
The
below properties are scheduled for auction; further details of
which are set out in Appendix 1 & 2.
§ 
Land adjoining 13 Island Farm Road, West
Molesey, KT8 2LJ
§ 
Land adjoining 42 Church Lane, Oxted, RH8
9LB
§ 
124 High Street, Knaphill, Woking, GU21
2QH
§ 
Land adjoining 38 St Martins Walk, East
Horsley, KT24 6SU
§ 
Land adjoining 24 St Martins Walk, East
Horsley, KT24 6SU
§ 
Land adjacent to Fountain Cottage, The
Marld, Ashtead, KT21 1RG
§ 
Howfield Cottage, Pirbright Bridge,
Brookwood, Woking, GU24 0AG
§ 
Land at Bury Close, Horsell, Woking, GU21
4RU
§ 
Land at St David's Close, Reigate, RH2
OEL
§ 
Amenity land off The Driftway, Nork,
Banstead, SM7 1LX
§ 
Land adjacent to The Willows, Frimley
Road, Ash Vale, GU12 5NT
§ 
Land at 18 Riverside, Laleham Reach,
Chertsey, KT16 8RS

 
Recommendation
Accordingly, the
‘above-cited’ delegated authority request is duly
recommended to enable relevant auction lots (as listed in
Appendix 1), to now be formally listed in the open market
for auction disposal.  
The
County Council has the power to dispose of any real estate asset in
any manner it wishes to – which includes
‘auction’ disposal route; the reason as to why these
properties are to be sold by auction (as opposed to alternative
‘private treaty’ disposal routes) is this will achieve
a timelier conclusion of sales of these comparably smaller
‘monetary value’ properties, and capture any associated
revenue efficiencies.
As
part of its statutory compliance of Section 123 of the Local
Government Act 1972 (LGA 1972), the County Council needs to ensure
that ‘market value’ is achieved on basis any property
is sold for the best consideration as reasonably
obtainable.  In this respect Lambert
Smith Hampton Auction Team:

§ 
Has provided a summary report for each auction asset
(as set via the links in Appendix 2), in respect of its
recommendations of ‘Reserve Pricing’, and provision of
‘Clawback’ and ‘Overage’ conditions as
appropriate.
Will be marketing for a minimum
period of four weeks ahead of any intended auction date – to
ensure sufficient ‘open market’ exposure of each asset
where acceptance of highest bid at or above the reserve price will
then satisfy such ‘best market value’ requirements.
 

Content

‘Decision
made:
 
The following was AGREED: 
 

1.   
The setting of each initial Reserve Price for each property - as
listed in Appendix 1
 

2.   
The provision of the specified covenants in the auction legal sales
pack for each property - as listed in Appendix 1 
 

3.   
Authorises the disposal of each property as listed in Appendix 1 by
auction process (or by separate negotiation); this to be on the
basis that for each property the price achieved is at or more than
the Reserve Price and compliant with the specified covenants - as
set out in Appendix 1