Ref: PCC/D/2024/14
EXECUTIVE SUMMARY
As part of the wider OPCC West Mercia Estates Strategy 2021-26, the asset known as The Orchard, located on Sling Lane, Hindlip, Worcester, WR3 8SN has been identified as surplus to requirement and marked for disposal.
The property has been used by West Mercia Police as office space for the last 24 years, with that use ceasing 12 months ago.
The property was marketed via local estate agents and an offer of £475,000 has been received.
PROPOSAL
For the PCC to:
- Approve the sale of former police house – The Orchard, Sling Lane, Hindlip, Worcester, WR3 8SN to the interested party for £475,000, subject to contract only.
- Approve the Marketing Agents commission of 1.5% of the achieved price of £475,000 (£7,125).
APPROVAL OF
West Mercia Police and Crime Commissioner
I hereby approve the above proposal.
PART 1 – NON-CONFIDENTIAL/EXEMPT FACTS AND FIGURES
SUPPORTING REPORT
The Orchard is a 1960s 4-bedroom detached house built for police staff accommodation. The property sits on a 0.74 acre plot with an outbuilding with two stores and a garage. The ground floor comprises of a hallway, small store, kitchen, one small and one large reception rooms. The first floor has 4 large bedrooms and a bathroom.
In 2001, West Mercia Police obtained permission to use the ground floor rooms of the building as office space. Then in 2019, permission was obtained to use the first floor of the house as office and meeting space. Thus, the use class of the house is Sui Generis, not Class C3 (dwelling).
Initial OPCC Estates Team in-house valuations of the asset varied between £400,000 – £450,000. However, to evaluate and determine the best market rate, an external agent was appointed via the Estates team to market the property in May 2023.
Upon inspections, the agent initially advised that, although the building needs substantial refurbishment and modernisation, it would attract good levels of interest on the open market due to the size of the plot, location, and size of the rooms in the building. The agents considered a future owner will use the premises as a dwelling after obtaining change of use and they recommended the property is advertised on the open market seeking offers “in excess of £475,000”.
The sale of the property has been complex and the only current live offer is for £475,000, subject to contract and the purchasers obtaining a mortgage for the property.
The purchasers have now achieved a residential mortgage for the property and the transaction can progress very swiftly with the exchange and completion. OPCC Estates expect for completion to be possible in September 2024.
As the freehold title of The Orchard must be separated from the freehold title of the Hindlip Headquarters, OPCC Estates commissioned for a specialised surveyor to mark out the boundaries of the land and create an official title plan. This has since been completed.
Considering all factors, it is recommended that the sale be completed at £475,000, reflecting the best possible market value for the asset.
STRATEGIC CONSIDERATIONS
This decision supports the following element(s) of the Safer West Mercia Plan:
☐ Putting Victims and Survivors First ☐ Building a More Secure West Mercia
☒ Reforming West Mercia ☐ Reassuring West Mercia’s Communities
The decision supports the above listed objectives through the following:
- As there is no operational policing requirement or demand for this asset, its disposal demonstrates West Mercia manages its resources to maximise value, effectiveness and efficiency.
- Savings from annual revenue repairs, maintenance and future maintenance costs of circa £6.8k will be avoided in addition there are a further £2.4k saving in utilities, thereby demonstrating that financial resources will be prioritised towards front-line services to the public
- Ensuring better resource management by maximising value, effectiveness, efficiency to meet demand.
BENEFITS AND THEIR REALISATION
Benefits include:
- Maximised capital receipt income to reinvest funds to support delivery of policing services
- Realisation of asset disposal income targets and timeframes as part of the West Mercia Estates Strategy 2012-26 and Estates Annual Savings Plan
- Mitigation of risk from unbudgeted annual and future maintenance costs – This asset is in sub-standard condition and the building fabric and utility services infrastructures are quickly deteriorating, requiring significant investment and funding, not provisioned in current or future budgets
- Mitigations and removal of risks to the PCC in respect of their Landlords legal requirements to ensure property specific statutory and regulatory compliance duties and obligations are adhered to and fulfilled
FINANCIAL AND TREASURER COMMENTS
The only live offer on the property is at £475,000. This is not in excess of the initial asking price, but is in line with the valuation provided.
Even though the offer is subject now to a residential mortgage (having submitted and gained a change of use back to a residential C3 dwelling), it is deemed that the purchasers are committed and will exchange and complete the transaction. As stated above they have already obtained permission to convert the premises back to a dwelling and have advised OPCC Estates that they have been approved for the needed residential mortgage.
The Agents appointed to market recommend that the offer is accepted.
If the property is sold, the PCC will not only obtain the capital receipt, but will also make annual revenue saving on the running costs for the premises (including council tax, compliance, planned and reactive maintenance) as well as avoiding future and potentially significant capital costs to improve and modernise the asset.
As stated previously, the commission on sale completion to the appointed agents is £7,125.
The proposal to proceed with the unconditional offer at £475,000 is supported.
Senior Finance Officer
LEGAL CONSIDERATIONS
By virtue of schedule 11, paragraph 14 of the Police Reform and Social Responsibility Act 2011 the Police and Crime Commissioner may do anything which is calculated to facilitate, or is conducive or incidental to, the exercise of the functions of commissioner. That includes entering into contracts and other agreements (whether legally binding or not) and acquiring and disposing of property (including land).
PUBLIC ACCESS TO INFORMATION
Information in this form is subject to the Freedom of Information Act 2000 (FOI Act) and other legislation. Part 1 of this form will be made available on the West Mercia Commissioner’s website. Any facts and advice that should not be made automatically available on request are not included in Part 1 but instead in a separate Part 2 report.
OFFICER APPROVAL
Chief Executive Officer
