Purpose

1.   
The purpose of the report is for the Executive to consider selling
a painting by the artist Walter Langley entitled ‘The Cornish
Fisher Folk’. The artwork is an asset belonging to Waverley
Borough Council which has been on loan to Penlee House and Gallery
in Cornwall since 2010.

 
2.   
The matter was previously discussed by the Executive in July 2025
where it was agreed that the Arts Officer should write to Penlee
House and Gallery offering them the opportunity to purchase the
painting at a price no lower than £65,000. The Executive
supported this approach because they felt the painting would
continue to deliver a public benefit in an appropriate setting,
which could not be guaranteed if the painting was sold at
auction.

 
3.   
The Arts Officer wrote to Penlee on 4 August 2025 offering a
private treaty sale. The alternative option was stated as being the
termination of the annual loan agreement and the withdrawal of the
painting so it could proceed to auction in March 2026.

 
4.   
Penlee Gallery responded immediately to confirm their interest in
buying the painting but explained that they would need to fundraise
as they did not hold the requisite funds within their budgets. They
are currently in the process of applying to the V&A Fund and
the Art Fund and expect decisions early December 2025. They have
also launched a public fundraising campaign to raise the
outstanding amount.

      
5.   
It was reported at Executive Briefing in July that the painting had
been recently revalued by Bonhams Auctioneers who recommended an
estimate of £60,000 - £100,000 as being a price the art
market would respond positively too. Bonhams can offer an
‘all in’ commission rate of 4% of the sale price plus
VAT . Given the option of selling to Penlee for £65,000 and
the recommended estimate form Bonhams, it is recommended that the
reserve is set to £70,000 at auction. A sale of £70,000
less the 4% commission would generate a receipt of
£67,200.

 
6.   
At the July meeting the Executive expressed concerned about the
ethics of the sale and requested assurance from Arts Council
England that no negative repercussions would arise if a sale went
ahead. The Arts Officer received written confirmation from the
Director of Museums and Cultural Property, which clearly stated
that selling the painting presented a minimum risk as it is not
accessioned to a museum collection. Therefore, a sale would not
affect current funding arrangements, the ability to apply for
funding in the future or the Accreditation of any of the museums in
the borough.

 
7.   
The option to sell the painting to Penlee Gallery would likely
constitute a disposal at less than best consideration, based on
sale estimate received from Bonhams (as set out in paragraph 1.5)
and the most recent insurance valuation. “Best consideration
reasonably obtainable” refers to the best price, or
equivalent economic value, that the Council could reasonably
achieve at the time of disposal, taking into account the
asset’s market value and any reasonable conditions of sale.
It does not necessarily mean the highest speculative offer, but
rather the amount that a prudent and well-advised seller would
expect to achieve in an open market transaction.

 
8.   
While the proposed sale to Penlee Gallery is likely to be below
best consideration, there are compelling social, cultural and
reputational benefits that justify this approach. The painting is
already held by Penlee Gallery on loan and is publicly accessible
as part of its permanent exhibition programme. A formal transfer of
ownership would ensure the artwork’s continued professional
conservation, curation, and long-term display, securing its
preservation for future generations. On this basis, the proposed
sale is considered reasonable and justified in the
circumstances.  

 
9.   
If the painting is purchased by Penlee Gallery for a sum of
£65,000, it is recommended that the full amount of income
derived from the sale is designated to support the cost of the
repair work to the Museum of Farnham. If, however, the decision is
taken to sell the painting at auction the financial return will not
be known until March 2026. In this instance, it is proposed that up
to £100,000 of the income is ringfenced for the Museum of
Farnham and that any surplus above this amount is shared with other
arts organisations in the Borough including Cranleigh Arts Centre,
Haslemere Hall, Godalming Museum, the Borough Hall and Haslemere
Museum.  In this eventuality, the Arts
Officer will consult the Executive on the development of a simple
funding criteria and application process for allocating the surplus
funding.

 
10. 
Furthermore, if the painting is sold to Penlee it is proposed that
the sale contract includes a ‘sell-on-clause’. This
would entitle Waverley to a pre-agreed percentage of the proceeds
of a subsequent sale should the painting be sold to a third party.
The purpose of this clause is to protect the Council’s
interests if the asset’s value appreciates significantly
after the initial sale for a specified period. 

Content

RESOLVED that:

 

1.     
The Assistant Director for Commercial Services to
enter a private treaty sale with the Penlee Gallery for the sale of
The Cornish Fisher Folk for a sum no less than £65,000 is
AUTHORISED.
2.    
In the event that Penlee House and Gallery fail to
match the asking price by 10 January 2026, the Assistant Director
for Commercial Services is to consign the painting to Bonhams
Auctioneers so it can be placed in a fine art sale in March 2026
with a reserve figure of £70,000 is
AUTHORISED.
3.    
An allocation of up to £100,000 of the income
generated by the sale towards the costs of repairing the Museum of
Farnham is APPROVED.
4.    
The ringfencing of any income from the sale of the
painting of more than £100,000 to benefit other cultural
assets in the Borough is APPROVED.

 

Reasons for the decision

1.   
The painting has been in the Council’s
ownership since the authority’s creation in 1974. Although
the painting is of value it has no obvious connection to Waverley
and provides no benefit to residents.

2.   
Due to security and insurance costs, it is not
financially viable to display the painting in the public areas of
the Council offices. For these reasons the painting has been on a
rolling annual loan to The Penlee Gallery in Cornwall since 2010,
where it delivers a public benefit in a location that is
appropriate to its origins.

 

3.   
The Council is having to meet an increasing cost for
the repair works to the Museum of Farnham. The proceeds of the sale
would help to reduce the Council’s expenditure. Income
designated for the Museum of Farnham repairs will be capped at
£100,000 and any surplus excess generated by the sale of the
asset will be distributed among other arts organisations in the
borough via a simple application process.

Alternative options considered

As set out in section 11 of the report.