TITLE: Sale of The Firs, Sling Lane, Hindlip, Worcester, WR3 8SN
Ref: PCC/D/2024/13
EXECUTIVE SUMMARY
As part of the wider OPCC West Mercia Estates Strategy 2021-26, the asset known as The Firs located on Sling Lane, Hindlip, Worcester, WR3 8SN has been identified as surplus to requirement and marked for disposal.
The property has previously been used by West Mercia Police for accommodation purposes and ad-hoc meetings, but all use of the property ceased 12 months ago.
The property was marketed via local estate agents and an unconditional offer to purchase the property for £568,000 has been received.
PROPOSAL
For the PCC to:
- Approve the sale of The Firs, Sling Lane, Hindlip, Worcester, WR3 8SN to the interested party for £568,000, subject to contract only.
- Approve the Marketing Agents commission of 1.5% of the achieved price of £568,000 (£8,520).
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 Firs is a 1960s 4-bedroom detached house originally built for police staff accommodation. The property sits on a 0.96 acre plot with an outbuilding with two stores and a garage. The ground floor comprises of a porch, hallway, kitchen, WC, shower room, one small and one large reception rooms. The first floor has 4 large bedrooms and a bathroom. The property has been used for accommodation purposes and ad hoc meetings for approximately the last 5 years.
Initial in-house OPCC Estates valuations of the asset varied between £500,000 – £550,000. However, to evaluate and determine the best market rate, the PCC instructed the internal OPCC Estates Team to procure and appoint an external agent to market the property (May 2023).
Upon inspections, the agent initially advised that, although the building needs substantial refurbishment and modernisation, it would attract a lot 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 and they recommended the property be advertised on the open market seeking offers “in excess of £575,000”.
The sale process has proven more complicated and agents have recommended accepting an unconditional offer, made at £568,000.
As the freehold title of The Firs 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, the OPCC Estates team recommend that the advice of the appointed agents is followed and the unconditional offer at £568,000 is accepted, as representing the best achievable value for the asset. Permission is therefore sought to complete the transaction.
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, future maintenance and running costs of circa £5.89k 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 poor 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
Although the initial projection was that the property may obtain a sale price of more than £575,000, currently, there is only one live offer – subject to contract, at £568,000. The offer comes from local cash buyers who can progress very swiftly with the conveyancing and completion.
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.
The proposal to proceed with the unconditional offer at £568,000 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
