Committee Report Checklist
Stage 1
Report checklist – responsibility of report owner
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ITEM |
Yes / No |
Date |
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Councillor engagement / input from Chair prior to briefing |
Yes |
28/10/25 |
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Commissioner engagement (if report focused on issues of concern to Commissioners such as Finance, Assets etc) |
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Relevant Group Head review |
Yes |
29/10/25 |
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MAT+ review (to have been circulated at least 5 working days before Stage 2) |
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This item is on the Forward Plan for the relevant committee |
Yes |
29/10/25 |
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Reviewed by |
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Finance comments (circulate to Finance) |
OO |
30/10/25 |
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Risk comments (circulate to Lee O’Neil) |
LN |
4/11/25 |
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Legal comments (circulate to Legal team) |
JC |
30/10/25 |
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HR comments (if applicable) |
N/a |
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For reports with material financial or legal implications the author should engage with the respective teams at the outset and receive input to their reports prior to asking for MO or s151 comments.
Do not forward to stage 2 unless all the above have been completed.
Stage 2
Report checklist – responsibility of report owner
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ITEM |
Completed by |
Date |
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Monitoring Officer commentary – at least 5 working days before MAT |
L Heron |
31/10/25 |
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S151 Officer commentary – at least 5 working days before MAT |
TC |
30/10/25 |
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Confirm final report cleared by MAT |
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4/11/25 |
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Title |
Approval to progress with the freehold disposal of vacant land known as plots 12 & 13 adjacent to Revelstoke, Shepperton Towpath, Shepperton TW17 9LL |
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Purpose of the report |
To make a decision
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Report Author |
Sian Bowen Principal Asset Manager |
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Ward(s) Affected |
Shepperton Town
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Exempt |
Main Report – No Appendix 2 - Yes |
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Exemption Reason |
Appendix 2contains exempt information within the meaning of Part 1 of Schedule 12A to the Local Government Act 1972, as amended by the Local Government (Access to Information) Act 1985 and by the Local Government (Access to information) (Variation) Order 2006 Paragraph 3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information) and in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information because, disclosure to the public would prejudice the financial position of the authority in any contract or other type of negotiation with a prospective purchaser who could then know the position of the Council. |
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Corporate Priority |
Resilience
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Recommendations
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Business Infrastructure and Growth Committee is asked to:
a) Approve the freehold disposal of Plots 12 & 13 adj Revelstoke, Shepperton Towpath, Shepperton for a price of £350,000 to Bidder A referred to in Appendix 2.
b) Delegate authority to the Group Head of Corporate Governance to enter into transfers to complete the disposals and any ancillary legal documentation required in relation to Plots 12 and 13 adjoining Revelstoke Shepperton Towpath, Shepperton shown edged red on plan in Appendix 1.
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Reason for Recommendation |
The disposal in the above manner will maximise the ability of gaining the highest and best value for the property and contribute towards the financial resilience of the Council, by generating a capital receipt. There is no debt associated with this land.
The Council has a statutory obligation to achieve best consideration from its land and property disposals. |
1. Executive summary of the report (expand detail in Key Issues section below)
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What is the situation |
Why we want to do something |
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• The land, totalling 0.197 acres, is currently vacant and is surplus to Spelthorne Borough Councils’ requirements. • Following a thorough marketing campaign, the Council have received an offer of £350,000 for the sale of the freehold interest • There is no debt associated with this asset |
• The Council has a statutory obligation to achieve best consideration in relation to its land and property disposals and this directs the Council to focus on financial resilience within its decision making, including disposing of assets, when possible, to relieve pressure on the annual revenue budget.. • This land is surplus to requirements. |
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This is what we want to do about it |
These are the next steps |
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• The Committee is asked to support the Asset Management team to proceed with the freehold disposal of this land at a price of £350,000. |
• Instruct the Council’s Legal Team to draft the necessary legal documentation to complete the freehold disposal. |
2. Key issues
2.1 This report seeks the approval from the Committee to proceed with the freehold sale of land known as plot 12 & 13 adjacent to Revelstoke, Shepperton towpath, Shepperton, TW17 9LL, known as the “Plot,” as identified in Appendix 1.
2.2 The Council owns a large portfolio of land and assets, which are held for a variety of purposes. The Council has a statutory responsibility to achieve best consideration from all its property holdings.
2.3 The Plot is located on a prime waterfront road was previously leased for garden use up until 31st March 2011 at a rent of £100 per annum. This Plot is surplus to requirements and has not been used by the Council since the expiry of the former lease in 2011. It is currently overgrown and has an unsightly hoarding fronting Shepperton towpath to prevent trespassers and encroachment.
2.4 The Council have considered alternative uses for the Plot and this has included the construction of a car park for visitors to the waterfront. Planning for this use was obtained in 2016 but this permission was not implemented and has now lapsed.
2.5 As the Plot stands, without specific planning approval for any development or alternative use, the land’s value is reduced to garden value. Any offers over and above a garden value reflects either a special purchaser or hope value on the land. We estimate that for garden use, the Plot would be c. £30-40,000.
2.6 There are a number of challenges associated with the Plot. The Plot is located in the Green Belt, which may limit its future uses together with being in a high risk flood zone. There is also an underground sewage pipe which runs across the land to an adjoining property which would need to be relocated in the event of alternative uses or development.
2.7 The Plot has been marketed for approximately 6 weeks by external property agents, with a number of offers received, as detailed in Appendix 2. The range of these offers was between £325,000 to £350,000.
2.8 The best price received was £350,000, received from a resident who lives in the adjoining property. The proposed purchaser can be considered a special purchaser for the reasons set out in Appendix 2. The proposed purchaser has also proposed a further offer of £300,000 with a 7 year overage provision. This would allow the Council to recover 20% of the profits of any development, 7 years from completion of the sale. Having undertaken a simple residual valuation, this could provide the Council with an additional c. £80,000, thus producing a total sale price of £380,000. There are however a number of risks associated with this offer, including obtaining planning consent for a new residential unit of any scale, increasing building costs affecting profitability and whether Bidder A actually has any desire to submit a planning application for a new property on the Plot.
3. Options appraisal and proposal
3.1 Option 1 – Proceed with the sale of the Plot for the freehold price of £350,000. Preferred Option – the Plot has been openly marketed and therefore can be demonstrated that best value is being achieved.
3.2 Option 2 – Proceed with the sale of the Plot for the freehold price of £300,000 with an overage provision that will mean that should the proposed purchaser obtain planning permission on the Plot for a new dwelling, the Council may receive 20% of the profit of any new building constructed on the Plot. As outlined in point 2.9 there is a degree of risk in this option, that a planning application will be submitted in the next 7 years, the degree of profitability of any development and whether Planning consent would ever be granted on the land. Not recommended.
Any overage provision is likely to yield an additional payment of c. £80,000, creating a total sale price of £380,000. Due to the uncertainty of receiving this additional £80,000, this option is not recommended.
3.3 Option 3 - The Council obtain planning consent on the Plot for a residential property. This could increase the value by up to £200,000 to £500-600,000 but the Council would incur architects and planning fees in bringing the site forward to planning. This would be a high risk strategy as the Plot is located in the Green Belt and in a high flood risk zone, which would result in a significant level of uncertainty regarding the granting of any form of planning for residential use. Furthermore, any development would require the relocation of a sewerage pipe where the consent and agreement of an adjoining owner (not the proposed purchaser) would be required. This could delay a sale and receipt of proceeds by up to 24 months. Not recommended.
3.4 Option 4 – retain the Plot and do not dispose. Not recommended.
4. Risk implications
4.1 The Council will no longer have control over how the Plot is utilised except via the planning process. The individual purchasing the Plot will be responsible for complying with the current and any future use.
4.2 The property agent has conducted their due diligence including evaluating the financial affordability of the preferred individual interested in purchasing the the Plot and is satisfied that the offer is proceedable and a mortgage offer is in place.
4.3 There is a risk that the Council are accepting a lower, total value for the Plot by agreeing a sale with no overage provisions. However there is a more significant risk that planning on the site for a new residential unit would not be forthcoming or that the purchaser would not apply for planning and therefore no additional overage payment payable.
4.4 There has been no formal valuation of the Plot, however best value can be demonstrated as the Plot has been subject to a formal marketing campaign and subject to best and final offers.
5. Financial implications
5.1 The disposal of the freehold interest in Plots 12 and 13 adjacent to Revelstoke, Shepperton Towpath, Shepperton, for £350,000 will generate a capital receipt for the Council. This receipt will contribute towards the Council’s capital programme and support its objective of maintaining financial resilience and debt reduction initiative. There is no outstanding debt associated with the asset, and therefore the full proceeds will be available to the Council upon completion of the sale.
5.2 The land is currently surplus to operational requirements and does not generate any income; disposal will remove any ongoing holding, maintenance, or security costs. The sale at £350,000 represents best consideration reasonably obtainable in accordance with Section 123 of the Local Government Act 1972, following an open marketing process.
6. Legal comments
6.1 Further to sections 120-123 of the Local Government Act 1972, the Council has the powers to acquire and dispose of land for the purpose of any of its functions. To satisfy the requirements of section 123 not to dispose of land for “consideration less than the best that can reasonably be obtained” a valuation should be obtained or the land extensively marketed
6.2 Any disposal will be subject to the terms of the contract, transfer and any other necessary legal documentation. The Council’s in house Legal Services will provide support
6.3 The proposed disposal seeks to demonstrate compliance with the Best Value Duty in the Local Government Act 1999.
Corporate implications
7. S151 Officer comments
7.1 The sale at £350,000 represents best consideration reasonably obtainable in accordance with Section 123 of the Local Government Act 1972, following an open marketing process
8. Monitoring Officer comments
8.1 The Monitoring Officer confirms that the relevant legal implications have been taken into account.
9. Procurement comments
9.1 There are no direct procurement implications as this is a disposal. The agents fee will be £4,375 plus VAT - £5,250.
10. Equality and Diversity
10.1 There are no direct equality issues arising from a property disposal.
11. Sustainability/Climate Change Implications
11.1 Requirements relating to any sustainability/climate change issues will be the responsibility of the proposed purchaser of this land.
12. Other considerations
12.1 N/a.
13. Timetable for implementation
13.1 If the recommendation is approved the sale will proceed with an aim to complete by end of November 2025.
14. Contact
14.1 Sian Bowen, Principal Asset Manager
s.bowen@spelthorne.gov.uk
Please submit any material questions to the Committee Chair and Officer Contact by two days in advance of the meeting.
Background papers: There are none.
Appendices:
Appendix 1 – Location of plot
Appendix 2 – List of offers