The Head of Legal, Democratic and Property Services presented a report on the subject of the release of a covenant affecting land at Overdale in Astwood Bank that had previously been sold by the Council. The covenant stipulated that the land concerned could only be used as a garden. However, a request had been received from the owner of the land to remove the covenant.
A quote had been received some time ago concerning the level of the capital receipt that would be generated for the Council as a result of removing this covenant. Officers were proposing a slight amendment to the proposals detailed in the report, and this was that there should be an up to date valuation undertaken.
The Executive Committee discussed the report and questioned the frequency with which covenants were applied and the reasons why the Council had applied a covenant to the sale of this particular land in 2009. Officers explained that this was a fairly standard arrangement and covenants were put in place to help protect the Council’s interests. At the time that the sale occurred it was likely that the purchaser had asked for additional garden land.
Reference was also made to the planning process that would need to be followed should the covenant be released. Officers confirmed that the proper planning process would need to be followed in these circumstances.
1) subject to receiving an updated valuation, authority be delegated to the Head of Legal, Democratic and Property Services, following consultation with the Leader, to negotiate and finalise terms for the release of covenants attached to LR Title No WR121916 in return for the capital sum; and
2) the Council’s budget is augmented by the capital receipt.