Decision details

As part of the Surrey Homes for Surrey Children Strategy it was agreed that a programme of purchasing up to 9 homes be established to convert into new Children’s Homes for Surrey children.  Cabinet agreed to the proposal and Corporate Programme Panel approved the methodology for managing the programme and purchase of properties.

The programme has been progressing to identify, assess and consider suitable properties across Surrey, and currently there are two homes under offer- in Farnham. 

The appropriate teams have carried out due diligence checks and the decision is to proceed with the purchase of the property identified in Farnham. 

The new home will provide 4 spaces for children with High Needs (social, emotional and mental health) as part of the programme. 

During the due diligence process a number of covenants were identified on the Farnham property.  This is not uncommon on larger houses in Surrey.  At this property they relate to maintaining fences to the boundary, roof coverings, and only having one building on site that is used for dwelling- other buildings on site can be used for workshops.   These have been investigated and the risks assessed and mitigated.

There will also be a need to change the planning designation of the property from C3- Dwelling House to C2- Residential Institution.  This will require a planning application to be determined.  If this application is not successful, the property would need to be re-sold.  Although the sale income would revert to the overall programme there would be some loss to the council as Stamp Duty Land Tax and fees incurred in the acquisition would not be recoverable.

The assessed risks and mitigations have been considered by CLT and approval given to proceed with the purchase.

Decision made:

1. It was AGREED that the identified property in Farnham be purchased for use as a Children’s Home within the Surrey Homes for Surrey Children Strategic Approach.

Reasons for Decision:

1.     the property fulfils the requirements of the need identified within the programme

2.     the risks associated with the purchase have been fully considered and are deemed acceptable

3.     appropriate mitigations are in place to manage the risks

Alternative Option- not to proceed with purchase

This would have incurred abortive costs and delay to the programme whilst another suitable property could be identified.

As stated above it is not uncommon for larger properties in Surrey to have Covenants, and if the approach would be to only seek properties without covenants that would excessively limit the available properties, whilst still incurring costs in the due diligence process to discover the existence of covenants.

None.