Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Salford City Council - Record of Decision
Title:Land at St Stephen Street, Salford
1. Approve variations to a City Mayor approval on the 22nd May 2017 that extended the lease term for the subject property from the residue of a 99 year lease, commencing in 1963, to a new 250 year lease for a consideration of £450,000. This would allow the development of 9 residential units.
The variations being :-
· If prior to a sale of a completed unit legislation is enacted requiring the transfer of the freehold or there is a change to the UK Finance Mortgage Lenders Handbook (formerly the Council of Mortgage Lenders Handbook) which prohibits the sale of a completed unit by way of a long leasehold interest then the City Council will transfer their freehold interest in that plot to the individual purchaser and simultaneously the developer will assign the residue of their leasehold in the plot.
· Both the City Council and the developer will transfer their respective reversionary interests to the individual purchaser for premium of £1. Costs in relation to professional fees for the above will be charged but these will be stated in the relevant documentation.
· Should legislation not have been enacted at the time of any sale of a completed unit then provisions shall be included in the relevant documentation which will form a binding agreement and which will oblige the developer and City Council to transfer their respective reversionary interests to the individual plot purchaser for a premium of £1 if :-
(a) legislation is enacted preventing an onward sale or any change to the UK Finance Mortgage Lenders Handbook which prevents onward sale; or
(b) the individual purchaser has owned and occupied the dwelling for a minimum of 2 years from the date of completing the purchase
whichever is earlier.
2. Authorises the Shared Legal Service to complete the necessary documentation and the taking of all steps which are expedient to give effect to the above recommendations.
The Reason: Disposal of surplus property.
The source of funding: N/A
The following documents have been used to assist the decision process- The relevant documents contain exempt or confidential information and are not available for public inspection
This decision is not subject to consideration by another Lead Member or Strategic Director
Publication date: 09/07/2019
Date of decision: 27/06/2019
Decided at meeting: 27/06/2019 - Property / Regeneration Briefing
Effective from: 17/07/2019