Decision details

To remove a s156A restriction from the title relating to the Right of First Refusal at 76 Pennine Road (restrictive covenant, ex-Council property).

Decision Maker: Head of Property, Finance and Assets and Deputy Section 151 Officer - Gemma Bell

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

To remove a s156A restriction from the title relating to the Right of First Refusal at 76 Pennine Road (restrictive covenant, ex-Council property).

Reasons for the decision:

The buyer of 76 Pennine Road has approached the Council to remove a s156A restriction from the title to the property. The restriction relates to the right of first refusal placed on ex-Council properties which means that should the property come to market, the Council have first refusal on buying it back for their stock.

 

76 Pennine Road is being purchased by a developer who intends to demolish it and the adjacent property to redevelop into flats. The vendor approached the Council prior to the sale being agreed to offer the property back and an appraisal was considered by CBH as a development site. The project was not brought forward and an alternative sale was agreed between the vendor and a private developer.

 

As such, Legal have advised that as the property was initially offered back to the Council and considered by CBH, the s156A has been complied with therefore it would be appropriate to remove the restriction from the title.  As previously advised the Council cannot receive a premium to remove the covenant, nor unreasonably refuse.

Alternative options considered:

There is no legal reason for the restriction to be kept on the title and the Council would be unreasonable to do so. The restriction has been complied with.

Wards Affected: (All Wards);

Other reasons / organisations consulted

Legal have advised that it would be appropriate to remove the restriction from the title.

Consultees

One Legal have provided advice relating to the restriction and the Council’s position.

 

CBH had already considered and rejected the site for development.

Contact: Gemma Bell, Head of Property, Finance and Assets and Deputy Section 151 Officer 01242 264124 Email: Gemma.Bell@cheltenham.gov.uk.

Publication date: 09/09/2021

Date of decision: 09/09/2021