STATES OF JERSEY
HEALTH AND SOCIAL SERVICES DEPARTMENT
Estate Management Services
Fairlea, 2 Le Clos de L’Ecluse, Le Mont les Vaux, St Aubin, St Brelade
Sale of property
Purpose
To ask the Minister to agree the sale of the 4 bedroom house known as Fairlea, St Aubin, that was bequeathed to the Public Health Committee for the benefit of all patients at the Jersey General Hospital by the late Mrs Vera Hutter.
Background
Mrs Vera Hutter (née Le Dain) died on 27 September 2005. Under the terms of her Will, Mrs Hutter bequeathed her personal property (with the exception of jewellery and silver items) to the States of Jersey Public Health Committee for the benefit of all patients of the General Hospital, as the Committee or the Administrator should think fit. It was her wish that the gift should be acknowledged by an appropriately inscribed plaque at the hospital. The monetary value of the personal property amounts to approximately £500,000.
Under the terms of a codicil to her Will, the late Mrs Hutter also bequeathed her real or immovable property to the Public Health Committee on similar terms. This comprised the property known as Fairlea, 2 Le Clos de L’Ecluse, Le Mont Les Vaux, St Aubin, which was registered in the Public Registry on 24 January 2006, transferring title to the Public in the person of the Minister for Health and Social Services.
It was also a condition that when the property was to be sold, it was to be offered in the first instance to a member of the family at its open market price. If declined then it was to be sold without public viewing or auction.
Fairlea is a detached two storey brick built house with adjoining single storey double garage in a small close of four similar properties. It comprises four bedrooms, kitchen, lounge/diner, utility room and two bathrooms with a large walled garden and driveway.
The property, whilst structurally sound, is in a poor state of decorative repair with dated original kitchen and bathroom fittings. Windows, electrical wiring, bathroom and kitchen fittings are all in need of repair or replacement.
Over the past year, the property has gradually been cleared of its contents. Together with some minor maintenance, the garden has been maintained latterly by the Health and Social Services Department.
Valuation
An independent valuation of the property, undertaken by Gaudin and Company, has valued the property in its un-refurbished state at £475,000, when allowing an estimated £10,000 for repairs and redecoration. This confirmed the valuation previously undertaken internally by Property Holdings.
In accordance with Mrs Hutter’s wishes, the property was offered through the Executor of the Will to members of the family. An independent valuation undertaken by another local firm of Estate Agents and Valuers on behalf of the family, indicated a range of values between £450,000 and £475,000 for the property in its existing condition. Subsequently, Property Holdings were informed that no member of the family wished to purchase the property at that price.
Disposal
Initially, consideration was given to basic refurbishment of the property before advertising it for sale on the open market, but the Executor of the Will advised that she had been approached by an interested purchaser.
After further negotiation, a cash offer of £490,000 has been made by Mr and Mrs S Lutz for the property in its present condition without any refurbishment. The Executor of the Will, has confirmed that she would be happy for the Minister for Health and Social Services to accept this offer.
Property Holdings, with benefit of independent professional valuation advice, believe this offer should be accepted as being a very fair offer which avoids further agents fees and the costs of refurbishment.
Use of the Bequest
The Minister for Health and Social Services, together with the Chief Executive and Director of Estates at the Department, have confirmed their acceptance of the offer, the proceeds of which, together with the £500,000 from the late Mrs Hutter’s personal property and sale of stocks and shares, are to be used in the relocation of the proposed ENT, Audiology and Eye Department at the General Hospital.
This has the full support of Miss Margaret Stone, as niece of Mrs Hutter and Executor of her Will. An inscribed plaque, with photographs of Mr John Hutter and Mrs Vera Hutter, will be placed in the new facility, as set out in the conditions of the Will.
Conclusion
The Public of the Island will benefit greatly from this very generous bequeath by the late Mrs Hutter, in providing this much needed new ENT, Audiology and Eye facility at the General Hospital. With the sale of ‘Fairlea’ a sum of almost £1.0 million will be immediately available for the completion of the project, which has the support of the family.
Based on the two independent professional valuations of the property, the cash offer of £490,000 by Mr and Mrs Lutz is considered by Property Holdings to be a good one which enables the passing of contract to be completed reasonably quickly, without further expenditure by the Public on the property or agents fees.
Recommendation
It is recommended that the Minister, in acknowledging the generous bequest of the late Mrs Vera Hutter, approves acceptance of the offer of £490,000 (four hundred and ninety thousand pounds) by Mr Steen Robert Lutz and Mrs Lynda Jayne Lutz (née Townsend) for the freehold of the property known as Fairlea, 2 Le Clos de L’Ecluse, St Aubin, with each party responsible for their own legal costs in respect of the transaction.
Report written by Paul Tucker 30 January 2007
Assistant Director – Property Holdings