Decision Maker: Cabinet Member for Communities and Regeneration
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
i. Approval for the Council to acquire the headlease from the LLP.
ii. Delegated authority to the Executive Director of Growth, Planning and Housing, to agree the necessary agreements, contracts and deeds as required to effect the acquisition of the headlease from the LLP. The Cabinet Member will be updated on a regular basis.
2.2 The Cabinet Member noted the Council’s Housing Services, will provide tenancy management services to all the affordable homes, including the intermediate homes within the scheme and full management services to the 3 homes at Fisherton Street and that, in consultation with Corporate Property, the Council's Corporate Property directorate is responsible for the sports and community centre.
2.3 The Cabinet Member noted that upon transfer of the headlease to the Council, the Council will need to enter into a novation agreement in relation to the managing agent in order to become the client of the managing agent.
3. Reasons for Decision
3.1 Timing is critical for the Luton Street scheme as residential marketing is well advanced and is close to the point where in the contract documents the LLP's exit strategy needs to be set.
3.2 The LLP needs to exit the scheme before exchange of contracts on the 55th market sale home (i.e. more than 50% exchanged). By contracting to transfer the headlease to the Council, this issue will be resolved.
3.3 The LLP is understandably already putting in place arrangements to procure a managing agent for the scheme. That managing agent will be appointed this year prior to Practical Completion (PC) of the scheme, to ensure a soft landing. If the Council takes the headlease as described in this report, it will inherit the managing agent at the same time, until the term of the managing agent appointment comes to an end. Going forward, it will be open to the Council to consider the appropriate option for the future management arrangements.
Urgent item?: Yes
Publication date: 09/04/2021
Date of decision: 09/04/2021