9 Hue Street, St. Helier: Sale of Freehold Interest.

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A decision made (18/10/2006) regarding 9 Hue Street, St. Helier: Sale of Freehold Interest by the Public.

Subject:	9 Hue Street , St. Helier : Sale of Freehold Interest by the Public
Decision Reference:	MD-PH-2006-0085	Exempt clause(s):		None
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		N/A
Telephone or e-mail Meeting?	N/A	Report File ref:		NS 12/320/5
Written Report – Title	9 Hue Street , St Helier Sale of Freehold Interest by the Public	Written report - author		Neil Sproston
Decision(s): 1. That the Public’s freehold interest in No. 9 Hue Street, St Helier be sold to Stephen Howard Booth and Lesley Booth, née McQuat, his wife, or such nominated beneficially owned company, for a total consideration of £11,500 plus the Public’s reasonable professional fees. 2. Under Standing Order 168 (1) (a) and 168 (3) the Minister for Treasury and Resources hereby notifies the States that he has accepted the recommendation of Property Holdings to agree to the above land transaction. 3. Under Standing Order 168 (5) the Minister hereby authorises the Attorney General and the Greffier to pass any contract which is required to be passed on behalf of the public. After the expiry of 15 days following the presentation to the States the sale may be concluded.
Reason(s) for decision: The proposed sale is at a value in line with other transactions of a comparable nature and as deemed appropriate by Property Holdings.
Action required: In accordance with Standing Order 168(3) of the Standing Orders of the States of Jersey, this decision must be presented to the States at least 15 working days before the contract is passed before the Royal Court. The Director of Property Holdings is to instruct the Law Officers’ Department and the States Greffe to pass the necessary contract, and to copy this decision to the Minister.
Signature: (Assistant Minister [1]) John Le Fondre			Date of Decision: MD-PH-2006-0085

9 Hue Street, St. Helier: Sale of Freehold Interest.

TREASURY AND RESOURCES DEPARTMENT

PROPERTY HOLDINGS

Property Transaction for Ministerial Decision - Minister for Treasury and Resources

9 Hue Street , St Helier - Sale of Freehold Interest

NS 12/320/5

Purpose

To request the Minister for Treasury and Resources to approve the sale of the freehold interest in 9 Hue Street to Stephen Howard Booth and Lesley Booth, née McQuat, his wife, or such nominee company as beneficially owned by them.

Background

Following a joint initiative between Save Jersey’s Heritage and the then Island Development Committee, Hue Street Renovations Limited was granted a 99 year lease of the entire site comprising 1-9 Hue Street on 21 February 1992, in order to facilitate the complete renovation of these dwellings back into habitable accommodation.

Following the completion of refurbishment works in respect of 9 Hue Street, this property was let under the terms of a separate contract lease which commenced on 11 June 1993 to Mr and Mrs SH Booth, the current leaseholders. The remaining site

;nos 1-7A Hue Street was let to Historical Renovations Limited under a lease passed before the Royal Court on 22 October 1993.

Practically speaking, the Public’s interest in 9 Hue Street is reversionary only, in that the property would revert back to the Public upon expiry of the lease. Whilst there is no liability attached to the property for the Public, the lease does not provide for the payment of any rent by the Lessees.

As with nos. 1 to 7A Hue Street, the current leaseholders have expressed an interest in acquiring the Public’s interest in the site, thereby converting their long lease to freehold. It is possible that potential purchasers consider the existing long lease in place to be a “wasting asset”, which could have a prejudicial impact upon the value of the property. An ancillary issue with long leases of this nature has also been the limited availability of mortgage finance for prospective purchasers.

Following protracted discussions concerning nos. 1 to 7A Hue Street the then Environment and Public Services Committee authorised an independent valuation to identify the level of consideration to be sought for the sale of this asset. Accordingly, a similar method has been employed to determine a suitable consideration in this case to reflect the benefit in a sale of the Public’s interest to those involved.

The valuation has regard to the Public’s interest in the property and the marriage value released through merging the two interests. Accordingly, it is recommended that a sale of the Public’s interest proceeds on this basis.

Recommendation

It is recommended that the Minister for Treasury and Resources approves a sale by the Public to Stephen Howard Booth and Lesley Booth, née McQuat, or such nominated company owned by them in the sum of £11,500 plus the Public’s reasonable professional fees.

Written By: Neil Sproston

Principal Valuer/Estates Surveyor

Signature …………………………

Authorised By: Paul Tucker

Assistant Director of Property Holdings

Signature ………………………… 09 October 2006