Purpose

The Council purchased the site in the 1960s, which comprised Wallis House and the Social Education Centre (SEC), both of which were demolished many years ago. That part of the site was sold to Hodgkinson Buildings in 2022 for residential development. The Council retained 0.815 acres and the Mayfair Family Club (407m2) building only (see Plan A).
The building comprises a single storey brick and tile clubhouse; building construction was funded and built by a local community group some 40 years ago on Council-owned land, with fullsupport and consent from the Council.

The site was previously occupied by the Mayfair Family Club who provided community focused activities, with the understanding they would include the service users from the SEC during their daytime activities. After the SEC closed, latterly the use leant more towards a social club and concert hall. This use ended due to financial difficulties faced by the club and the premises were fully vacated in February 2026. The Corporate Asset Management team within Corporate Property confirmed in May 2026 that there is no requirement within the Council to retain or refurbish the property for any service delivery requirements and confirmed to progress the freehold disposal.

In the last 3 years the Council has not spent any revenue
on managing or maintaining the property. During handover from the outgoing tenant it was highlighted that there may be regulatory compliance requirements that are not met – see Legal Issues section. While there has been no revenue spent previously; due to the Council being the freeholder and now the premises are vacant the financial responsibility for any damage or holding costs rests with the Council. The longer the premises are unoccupied the risk of incurring revenue costs increases. The only identifiable cost known at this stage is the Business Rates, estimated at £5,940 pa. There is no Condition Survey available to ascertain any potential works required.

Local Councillor Engagement
Cllr Catton as Local Member has been informed of the proposal.
Councillor Gibson, as Executive Portfolio Holder for Property, has been consulted and is supportive of the proposal

Social Value
It is not thought that the disposal will derive any social value, though if a sale is achieved quickly this is likely to reduce the risk of vandalism and deterioration of the unoccupied building.

Restrictive Covenants
It is assumed the sale would include a restriction against title stipulating that the property should not be used for Housing in Multiple Occupation (HMO) and that this be protected by way of a covenant procedure to bind any future purchasers.

Legal Issues
While the Council has good title to the site, there are numerous matters that are unknown and may impact the value, including:
• Presence of asbestos
• Regulatory compliance in facilities management matters such as fire, gas, and electrical
• EPC rating
• Outstanding utility bills from previous occupant (some services have been disconnected)
Method of Disposal
Following the appointment of marketing agents and receipt of professional advice, the property will be taken to market by either private treaty on the open market or
via auction.

The potential capital receipt figure could be in the region
of £150,000, as suggested by the Council’s in-house Estates Surveyor.

Local Government Reorganisation (LGR) Consideration has been given to the potential LGR implications, and the professional view of Corporate Property is that this disposal will not have any impact on the LGR proposals as the building is surplus to Council property requirements.
Finance comments
The financial implications are expected to be a potential capital receipt from the disposal of the property, previously estimated in the region of £150,000, subject to market conditions, site condition and any due diligence issues. Disposal would reduce the Council’s exposure to anticipated holding costs and associated risks with a vacant property, including security, maintenance, compliance, insurance, utilities, vandalism and deterioration. However, there may be costs or value implications arising from unknown compliance matters, condition issues, outstanding utilities, or any restrictions placed on the title.

Decision

To approve the disposal of Louth Mayfair Family Club building on the open market.
Method of sale to be agreed with appointed agents in due course following receipt of marketing recommendations.

Alternative options considered

1. Do nothing – this option is not recommended. There is no operational requirement for the property and it has been declared surplus. The vacant building is at risk of attracting anti-social behaviour and deterioration of the condition of the building due to being vacant.
2. Lease to third party tenant – this option was not explored. The anticipated capital cost of bringing the property up to a lettable standard in terms of regulatory compliance, repairs and maintenance and internal decoration doesn’t align with any potential rental income.