When we decide we no longer need a property to deliver services, we cannot retain the property if it doesn't provide best value for money for the people of Derbyshire. We therefore must sell property.
There are certain legal requirements we must consider before we are able to sell property. Property could be land and / or buildings.
Process for selling property with interest by community groups
Where property owned by us, and is identified for sale and has community group interest, the process shown document attached to this page will be followed.
We will engage with community groups who use the property before the property is offered for sale on the open market. This is to establish if the community group wants to and is able to buy the property.
Community groups who do not already use the property can bid for the property when it is offered for sale on the open market.
Our legal obligations
We are legally required to obtain the 'best consideration' when selling any property. 'Best consideration' does not necessarily mean the best price.
In certain circumstances, we are able to sell property at less than the best possible price, if its future use will help secure the promotion or improvement of the economic, social, and environmental well-being of the area.
To go down this route, the potential buyer for example a community group) must present a meaningful proposal / business case that clearly demonstrates how the economic, social, and environmental well-being of the area would benefit. This does not set a precedent that our property can be automatically purchased for less than best price.
Our legal requirements are set out in Section 123 of the Local Government Act 1972 as amended by the General Disposal Consent 2003.
Further information can be found by following the links on this page.
How is a community group defined?
A community group is defined as:
- A parish council
- A charity
- A community interest company
Or one of the following (that does not distribute any surplus it makes to its members):
- A company limited by guarantee
- A community benefit society
Closure of the property
As part of the initial engagement with the community group(s) using the property, the following will happen:
- community group will be advised of the intended closure date of the property
- divisional members will be advised of the intended closure date of the propertyThe property will close on the intended date, even if discussions with the community group(s) are still in progress
- the property will close on the intended date, even if discussions with the community group(s) are still in progress.
- the re-opening of the property will be undertaken by the community group that buys it, where applicable
Financial contributions
We challenge the need for all its properties and will not invest in any it no longer needs. This means that we will not contribute financially towards future running costs, or any future repair and maintenance of the property being sold. On the same basis, no work to improve, update or modernise the property will be undertaken by us prior to the sale.
Costs
The Community Group will be required to pay the our legal and surveyor’s costs incurred in the sale. This will be 3% of the sale price, subject to a minimum of £1,500 plus VAT where applicable.
Contents and equipment
The property will be sold with any equipment that we do not require for re-use at any of its other properties. This could include office furniture, other furniture, and service delivery equipment. Other Scenarios include:
Assets of community valueAn asset of community value (ACV) is a building or piece of land that is used to further the social wellbeing or interests of the local community.
To be listed as an ACV, a piece of land or a building must be nominated by an organisation with a local connection and meet certain legal criteria.
District council's maintain registers of ACVs in their districts and are responsible for considering nominations.
The listing of property or land as an ACV does not prevent the owner from selling it, but there is a process that must be followed.
The owner must allow specified periods of time:
- for community groups to express an interest in the ACV
- for community groups to then prepare and submit their bid
The aim is that if the property comes up for sale, then they will be given a fair chance to make a bid to buy it on the open market.
The owner is not legally required to sell the ACV to a community group that makes a bid. We own some ACVs. If we decide to sell one, the process shown in the flowchart above will be followed.
More information on ACVs can be found in the Localism Act 2011 using the following link. See the Localism Act 2011.
Community asset transfers
A Community Asset Transfer (CAT) is the transfer of property from our ownership in to the ownership of a voluntary or community organisation, regardless of whether they have previously used the property or not.
We haves a CAT protocol. This is a voluntary arrangement and not legally binding.
CATs will not be considered where:
- the property is still used to deliver the our services
- the property is considered to have a significant market value
- the property delivers, or has potential to deliver, a significant amount of rental income
To find out more about the our CAT Protocol, see community asset transfers
Further information on any of the above can be requested by email estates.management@derbyshire.gov.uk.