The Cabinet Member for Property, Waste and Infrastructure approved the joint disposal of Clarendon House in Dorking. The decision was made by Councillor Natalie Bramhall, Cabinet Member for Property, Waste and Infrastructure, in her capacity as Leader of the Council due to the usual decision-maker's illness.

Disposal of Clarendon House, Dorking

The meeting approved the joint disposal of Surrey County Council's freehold interest in Clarendon House, located at 28 West Street, Dorking, RH4 1QJ. This disposal is being undertaken in conjunction with the Surrey and Borders Partnership NHS Foundation Trust (SABP), which holds a long head-leasehold interest in the property. The joint sale will enable the asset to be sold with full vacant possession.

The decision was made by Councillor Natalie Bramhall, Cabinet Member for Property, Waste and Infrastructure, acting as Leader of the Council. She stated, The cabinet member for property, waste and infrastructure would normally have taken this decision but is unwell so as the leader of the council I will take the decision on her behalf.

Vicky Holland, Head of Acquisitions and Disposals for Land & Property, explained that the Council currently receives only a peppercorn rent from its freehold interest in Clarendon House. This means the asset is generating no income for either the Council or SABP. The proposed disposal will release the asset for sale, generating capital receipts for both organisations. If the disposal did not proceed, the Council would not be able to utilise the building for approximately 60 years until the leasehold interest reverts.

The report presented to the Cabinet Member highlighted that the property was declared surplus to operational requirements in April 2026. The joint marketing approach with SABP was agreed to enhance values and share proceeds. The transaction is expected to generate an immediate return for the Council, providing an enhanced receipt by combining the legal interests. The Council's freehold interest, otherwise, would only yield a nominal amount for the remaining leasehold term before the building's reversion.

The recommendations approved were:

1. To approve the joint disposal of the Council's freehold interest in Clarendon House, 28 West Street, Dorking, RH4 1QJ, in conjunction with the Surrey and Borders Partnership NHS Foundation Trust's head-leasehold interest, to the party and on the terms outlined in the Part 2 report.
2. To delegate authority to the Deputy Chief Executive and Executive Director of Resources (s151 Officer), in consultation with the Director of Land and Property, to finalise the transaction and enter into all associated legal agreements.

The report also noted that the transaction arises from an open marketing campaign that secured bids detailed in a Part 2 report. The recommended bid and terms were confirmed as supporting best value by the marketing agents. The disposal is expected to contribute to the Council's capital receipts target and eliminate ongoing revenue and void costs associated with maintaining the site. Costs of sale, including legal and agency fees, are estimated at approximately 1.5% of the sale value.

The decision aligns with the Council's priority objectives of tackling health inequality, enabling a greener future, ensuring no one is left behind, empowering thriving communities, and being a high-performing Council through the generation of a capital receipt.