Decision details

To approve the proposed leasehold enfranchisement strategy which recommends the use of the Leasehold Reform Act 1967 and the Leasehold Reform Act 1993 to compulsorily purchase the freehold or new extended leasehold interests in residential leasehold properties where the leases are coming to an end, utilising the enfranchisement pot to fund the purchases, under a strategic approach in line with the HRA strategy. 

(i)         that approval be given to the proposed residential leasehold enfranchisement strategy, under the approach set out in paragraphs 3.31 to 3.34, which recommends a combination of options for dealing with the council’s fixed term residential leasehold interests;

(ii)        that approve ‘in principle’ be given to the recycling of capital receipts arising from the disposal of leasehold properties that are surplus to requirement into the enfranchisement pot;

(iii)       that approval ‘in principle’ be given that where the council is the freeholder and where the leaseholder is exercising his or her enfranchisement rights to buy the freehold or a lease extension, that these capital receipts are also recycled into the enfranchisement pot;

(iv)       that approval ‘in principle’ be given that that where the available funding in the enfranchisement pot potentially delays or prevents the Council being able to carry out enfranchisements, that such costs be met directly from HRA Resources;

(v)        that it be noted that officers shall produce a report for the Executive on individual property transactions where the prescribed delegated authority limit of the Operational Director of Property and Projects was exceeded;

(vi)       that it be noted that the council owns the leasehold interest in two large blocks consisting of approximately 65 flats.  The lease has 54 years remaining and officers are investigating the option of extending the lease.  A separate report will be produced for the Executive on the recommendations once the options have been considered with BHP and discussions with the parties holding superior interests have taken place.