26 La Rue De Carteret, La Rue des Pres, St Saviour: Proposed Sale

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A decision made on 8 October 2009 to approve the sale of 26 La Rue De Carteret, La Rue des Pres, St Saviour

Decision Reference: MD-PH-2009-0072
Decision Summary Title :	DS – 26 La Rue De Carteret, La Rue des Pres, St Saviour – Proposed sale		Date of Decision Summary:	01/10/09
Decision Summary Author:	Principal Valuer		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	WR - 26 La Rue De Carteret, La Rue des Pres, St Saviour – Proposed sale		Date of Written Report:	01/10/09
Written Report Author:	Principal Valuer		Written Report : Public or Exempt?	Public
Subject: PG 885 – Proposed sale of 26 La Rue De Carteret, La Rue des Pres, St Saviour
Decision(s): The Minister accepted the recommendation of the Minister for Housing for the sale of: 26 La Rue De Carteret, La Rue des Pres, St Saviour, with a first time buyer value of £385,000 for the sum of £304,150. As previously approved by the States in Housing Property Plan (P6.2007).
Reason(s) for Decision: 1. Under Standing Order 168 (1) (a) and 168 (2) (a) and (b) the Minister accepts the recommendation of a body established by the States to manage land and buildings owned by the Public of Jersey in respect of disposal of land. 2. Under Standing Order 168 (5) the Minister hereby authorised the Attorney General and the Greffier to pass any contract which is required to be passed on behalf of the Public.
Resource Implications: The Housing Department will receive a capital receipt as identified above, whilst foregoing a rental in respect of the above property. The capital receipt to be spent in accordance with Article 15(3) of the Public Finance (Jersey) Law 2005.
Action required: The Director of Property Holdings is to instruct the Attorney General and the Greffier to pass the necessary contract, and to copy this decision to the Chief Executive of the Housing Department, the Minister, Treasurer and Deputy Treasurer.
Signature:		Position: Deputy J A N Le Fondré Assistant Minister* MD-PH-2009-0072
Date Signed: 8/10/09		Date of Decision (If different from Date Signed):

26 La Rue De Carteret, La Rue des Pres, St Saviour: Proposed Sale

TREASURY AND RESOURCES DEPARTMENT

PROPERTY HOLDINGS

Property Transaction for Ministerial Decision –

Minister for Treasury and Resources

Proposed Sale of :-

26 La Rue De Carteret

St Saviour

Purpose

To accept the recommendation of the Minister for Housing in respect of the proposed sale of the above property to the first time buyer detailed in MD-H-2009-0080 attached at Appendix 1 in accordance with the Social Housing Property Plan 2007 – 2016 (P.6/2007).

Background

On 17 July 2007 the States approved P.6/2007, the Social Housing Property Plan 2007 – 2016. Section 3.7.4 empowered the Housing Department to sell certain properties as detailed in Appendix D2 of P6.2007.

Current Situation

The Minister for Housing seeks the acceptance of the Minister for Treasury and Resources to the terms and conditions which have been agreed by the Housing Department on behalf of the Public for the transaction set out in Appendix 1.

Jersey Property Holdings acknowledge that this Estate is already of mixed tenure, following a large number of sales in 1982 of the first time buyer homes at the “Bashfords Nurseries Development”. All of the homes sold in 1982 have contractual obligations to contribute to the maintenance of the common parts. Jersey Property Holdings acknowledge that the advice of the Law Officers Department is that all new sale contracts should be consistent with the 1982 originals. In order to set up a Residents Association for the Bashfords Estate, the Public will require the approval of 51% of the property owners. As the Public currently holds a minority share in respect of proposed voting rights on the Estate, it is possible that the Public will be unable to obtain such approval; therefore, it may be unlikely that a Residents Association will ever be formed on this Estate.

Ordinarily, efforts are made to ensure that any ongoing public liability for communal areas is removed by way of selling off estate roads etc to new homeowners or to Residents Associations. In this case this is unlikely to be possible. In this respect, the Housing Minister accepts that ongoing liability for such areas will remain the responsibility of the Housing Department, both in regards to general management and funding.

Should at any time in the future it be agreed that those liabilities are to pass to Jersey Property Holdings, this could only be done in co-operation with Jersey Property Holdings where they would specify the budget and resource required. Should any dispute arise at the time an independent assessment would be necessary.

Recommendation

Ordinarily the Jersey Property Holdings Department would/could not recommend such a transaction as the disposal is at less than best consideration (i.e. best financial value). However, it is accepted that the Minister for Housing is trading initial financial value for social benefit in accordance with a decision made by the States Assembly. This therefore does allow the property to be sold initially at a restricted value and accordingly it is recommended that the decision(s) of the Minister for Housing is accepted.

Written By: Principal Valuer

Signature …………………………

Authorised By: Director of Jersey Property Holdings

Signature ………………………… 5 October 2009