The Council is a major owner of property and land assets which are held in the General Fund (GF). The assets held by the council encompass a range of public, corporate and operational buildings, car parks, public toilets, green spaces and recreational land and other buildings of community interest, along with smaller parcels of land will little or no investment or development potential.
The disposal of surplus GF assets will raise capital receipts than can be reinvested into the delivery of other projects or for the delivery of public services.
This GF Asset Disposal Policy sets out how the council will meet its statutory responsibility in relation to the disposal of land and property assets. It also sets out the process for deciding how assets will be declared surplus, and the various methodologies that can be employed for disposing of assets.
An up-to-date GF Asset Disposal Policy is necessary for the council to ensure that property and land decisions are made with clarity and transparency.
This policy supports the Council Strategy, including the commitment to make Wealden an enabling and enterprising council working alongside our communities to create a greener, fairer, and kinder district for present and future generations.
The GF Asset Disposal Policy also aligns with the Asset Management Plan.
The purpose of the GF Asset Disposal Policy is to:
- Facilitate the disposal of assets that are no longer meeting corporate or strategic need.
- Set out the operational protocol for the process relating to disposals of GF land and property.
- Provide an opportunity to purchase assets to protect and improve the economic, social or environmental well-being of an area.
A wide range of legislation and case law applies to local authority land transactions. Legal advice will always be sought at the earliest opportunity.
Relevant legislation includes the Local Government Act 1972 and the General Disposal Consent (England) 2003.
Wealden District Council owns and manages a large range of assets, held in different classes:
- Operational
- Leisure, Recreational & Public Conveniences
- Commercial
- Investment
- Vicarage Field
- Land
- Structures
- Unadopted Roads
To make best use of General Fund assets, there are circumstances where disposal of an asset will lead to a net overall benefit. Examples of this may include a small structures or parcels of land with no development potential, or which add little or no value to the council or its residents
In the context of Local Government Reorganisation, many town and parish councils have expressed an interest in acquiring assets in their area which are currently leased to them and/or used for the benefits of their communities and which they wish to protect for future generations.
A disposal is defined as:
- A freehold transfer; or
- The grant of a lease exceeding seven years.
A disposal may also include the granting of easements and options.
Leases of seven years or less are not covered by this Policy, as they are exempt from the statutory requirement to obtain best consideration.
The council may identify assets where it is in the council’s interest to dispose or it may receive expressions of interest for the purchase of an asset.
All proposals for disposal of an asset must be economically favourable for the council via the receipt or saving on maintenance or repair of an asset, or a combination of receipt and saving.
Where any asset is considered for disposal, the value must be established by a Royal Institution of Chartered Surveyors (RICS) qualified surveyor. Valuations will be undertaken on the basis that any disposal will be at market value.
The Local Government Act 1972 requires that any disposal must be made for the best consideration that can reasonably be obtained, unless the disposal is made with the consent of the Secretary of State, either through a specific consent or under a general consent.
The General Disposal Consent (England) 2003 removes the need to seek specific Secretary of State consent, provided two conditions are met:
- the difference between the unrestricted value of the land and the consideration being accepted must be £2 million or less; and
- the council must be satisfied that the disposal will help to promote or improve the economic, social or environmental well being of its area or of people within it.
Preparation will include internal consultation, legal review, assessment of development potential, valuation by an independent RICS surveyor, and approval through Cabinet or delegated authority.
The Council may dispose of assets by private treaty, public auction, market sale, informal tender or formal tender, ensuring compliance with Financial Procedure Rules and achievement of best consideration.
GF asset disposals will be made in accordance with the delegated approvals set out in Financial Procedure Rules within the constitution.
Where a disposal is instigated by a party other than the Council, that the Council will look to recover its costs in dealing with the disposal, for example valuations or legal fees in accordance with the Council’s Fees and Charges Book.
A receipt from a GF asset sale is capital if it is greater than £10,000. Capital receipts will be used to finance the capital programme, supporting the delivery of priority projects and wider service objectives. Where disposals relate to minor assets or result in small receipts, these may be applied in line with accounting requirements, including being recognised as revenue income where appropriate.