Decision details

To purchase property, Exeter, at a value in the region of £XX (with negotiation to a maximum of £X based upon recommendation of ECC valuer) Stamp Duty should also be taken into consideration

Decision Maker: Director - Bindu Arjoon

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

To purchase XX, Exeter, at a value in the region of £ (with negotiation to a maximum of £135,000 based upon recommendation of ECC valuer) Stamp Duty should also be taken into consideration, that being in the region of £4,000 for £and increasing to £for £.

Reasons for the decision:

To make best use of the  council’s housing assets, increase stock provision and rental income. 

 

This property is a one bedroomed first floor flat within a council owned block of 8 flats and was purchased by the sitting tenant at the time under the Right to Buy. The Authority retains ownership of 5 units within the block.

 

The council has received an offer by the current leaseholder to purchase the property and it has been valued by the Authority’s valuer at around £135,000 subject to the condition of the property.

 

ECC wishes to make an initial offer of £130,000 (plus stamp duty) with a view to negotiating to a maximum value of £135,000 (plus stamp duty) and purchase the property for the following reasons:

 

  • Our current Asset Management Strategy states that we will dispose of one off properties away from our concentration of stock and reinvest in properties that are located within our current portfolio. This will be more cost effective as these properties will be less costly to maintain operationally. 16b Southgate fulfils the latter part of this strategy.
  • ECC will benefit from the reduced leaseholder obligations
  • Acquiring the property will increase the HRA portfolio and meet rising demand for two bedroomed properties
  • Our staff and contractors are familiar with the archetype for the purposes of effecting repairs and planning programmed works.

 

Alternative options considered:

This is the best option and will seek to streamline the HRA portfolio, reducing operational costs for repairs and planned works.

 

Publication date: 19/07/2019

Date of decision: 19/07/2019