Decision details

Required delegated approval (by nominated Council Officers) for auction disposals

Decision Maker: Deputy Chief Executive and Executive Director Resources, Director of Land & Property, Interim Executive Director of Environment, Property and Growth (EPG)

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

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.

Decision:

‘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

Reasons for the decision:

As set out in the above ‘Summary & Recommendation’ sections.

Alternative options considered:

NA.

Interests and Nature of Interests Declared:

None.

Publication date: 06/05/2025

Date of decision: 29/04/2025

Restricted enclosure View reasons restricted