Purpose

This report seeks the approval
of the Interim Director of Commercial Investment and Capital under
the powers delegated to them of the surrender of an existing lease
made between the Mayor and Burgesses of the London Borough of
Croydon and Croydon Churches Housing Association Limited (CCHA)
dated 31 March 1983 in relation to 367 Holmesdale Rd SE25 6PN
(“the Property”). The lease came to an end in March
2023 and a notice of surrender was issued in November 2023 with the
last tenant exiting in January 2024. The Council is the freeholder
owner of the Property
 
The Council has commissioned a
dilapidations survey of the Property and
this has revealed costs of c£0.100m which the Council and its
appointed agent SHW are liaising with CCHA to recoup. It is
unlikely that the Council will achieve the amount indicated as the
use of the Property may change. The Council will need to incur
these costs including security costs until works are commissioned.
The costs of works are yet to be determined but the Council has the
option to dispose of the Property and seek to obtain a capital
receipt.
 
The Council is considering
utilising the Property for a home for children with complex needs
or for Temporary Accommodation purposes. A subsequent formal
business case will be developed.
 
A formal valuation has been
carried out with which indicates the value to be c£825k. The
Property is not listed on the Council’s asset register due to
the long lease that was granted to CCHA since the 1980s.

Content

For the reasons set out in the
report, the Interim Director of Commercial Investment and Capital
AGREED to:
 
Surrender of the existing lease
of the Property, from CCHA as the lease term has now
expired.
 
To note that the dilapidations
position is yet to be confirmed and the surrender will only take
place once a sum has been settled by CCHA in line with advice from
SHW.