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					                                                        Constitution of London Borough of Waltham Forest
                                                                         PART 8 Property Procedure Rules



              Part 8 - Property Procedure Rules
1.       Management of Council's Property
         1.1.      All Council property is owned corporately by the Council, as
                   corporate landlord, and managed on the Council's behalf by the
                   Head of Property Services. There are no property assets held by
                   individual services of the Council. ‘Property’ means any land and/or
                   buildings owned by the Council or in which it has a legal interest.

         1.2.      If the Council’s property portfolio increases substantially then the
                   Corporate Landlord's budget must be reviewed accordingly.

         1.3.      The Head of Property Services is designated the Council’s
                   Corporate Property Officer and is responsible for the application
                   and compliance of these Procedure Rules.

         1.4.      Any Council Service occupying property shall do so on the basis
                   that it pays an Asset Charge or rent in accordance with the
                   Council's accounting practice. All property occupiers (including
                   internal or external contractor/s) will agree an asset plan with the
                   Head of Property Services, and property shall only be occupied in
                   accordance with that asset plan.         "Asset Charge" is defined in
                   CIPFA's Code of Practice on Local Authority Accounting (April
                   1994).

         1.5.      An Asset Plan is a document, which sets out clearly for the Council
                   and the occupier of the property the basis of that occupation, the
                   costs of that occupation and the responsibilities of the parties in
                   relation to the property and its costs. The plan will specifically
                   outline the use of the property and how suitable the property is in
                   fulfilling that use. It will also outline any proposals in the short,
                   medium and longer terms, which may affect the property, which is
                   not fully utilised or is no longer required for its current use.



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                                                                         PART 8 Property Procedure Rules


         1.6.      Maintenance and investment requirements of schools will be as
                   determined through the schools asset management plan.                         This
                   must align with the Council’s Asset Management Plan as far as is
                   practicable and is the responsibility of the Director of Finance. The
                   schools’ are responsible for the assets as set down in the Council’s
                   Local Management Scheme and in relevant Department of
                   Education and Science regulations.

         1.7.      The Head of Property Services will be responsible, in conjunction
                   with the relevant Service, for the maintenance and updating of
                   Asset Plans annually.

         1.8.      If a Service decides that any property it is using is no longer
                   required for that purpose, it is the responsibility of the appropriate
                   Head of Service, as tenant, to give at least six months’ notice of any
                   property not required. During that time the Service must allow the
                   Head of Property Services and prospective future users to view the
                   property. However, the Service will still be responsible for all
                   running and other costs of the property, including security costs,
                   until the six-month period has expired.

         1.9.      The Head of Property Services must prepare a report, for the
                   approval of the Director of Finance, in consultation with the
                   Portfolio      Member    for   Finance,       Risk      and       Governance,
                   recommending whether the property:

                   1.9.1. is to be held for use by another Service that has identified a
                            specific need either immediately or in the future;

                   1.9.2. is to be sold either on the open market or to a nominated
                            purchaser;

                   1.9.3. will be kept under review pending possible future uses.

         1.10. All properties in categories 1.1.2 and 11.2 will be reviewed annually
                   as part of the Asset Management Planning process.

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         1.11. Where any transaction, including the transfer of property from one
                   use to another, requires public notice to be given, the Head of
                   Property Services will do so and report responses to the Portfolio
                   Member for Finance, Risk and Governance/Cabinet.

2.       Disposal of Property

         2.1.      Property can only be disposed of after a report has been prepared
                   by the Head of Property Services for approval by the Director, of
                   Finance. The report will recommend the marketing strategy. The
                   Head of        Property Services may also           recommend that a
                   development or planning brief should be prepared and included in
                   the sale documents.

         2.2.      All disposals must be on a competitive basis by advertisement in
                   the open market unless the Director of Finance agrees otherwise.
                   The Director of Finance may only agree otherwise if the report from
                   the Head of Property Services recommends that other factors be to
                   be taken into account in determining "Best Consideration". The
                   Council will always seek the best price, which can reasonably be
                   obtained, or, if Best Consideration is not obtained, the consent of
                   the Secretary of State for the Environment in accordance with
                   Section 123 of the Local Government Act 1972 is required other
                   than in the circumstances where the General Consent 2003 of the
                   1972 Act applies.

         2.3.      If the agreed method of disposal is by public auction, the property
                   must not be sold at less than the reserve price determined in
                   agreement between the Head of Property Services and the
                   appointed auctioneer.

         2.4.      If the agreed method of disposal is by private treaty the asking price
                   must be not less that the Head of Property Services valuation or the
                   agent's valuation if one has been appointed.


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         2.5.      Any negotiations with interested parties must take place at either
                   the Council's offices or those of the interested party or their
                   advisers. A written record of any negotiations must be made. The
                   Head of Property Services must approve terms provisionally agreed
                   by the negotiators.

         2.6.      If a Chief Officer considers that there is any significant legal or
                   financial risk involved in the disposal of any property, a special
                   report must be prepared by the Head of Property Services and
                   considered by the Cabinet. This report must contain a full
                   assessment of the risks and the views of the Director of
                   Governance and Law and Director of Finance. The report must also
                   contain a statement from the Head of Property Services that the
                   Council will achieve the best price which can reasonably be
                   obtained, or has obtained the consent of the Secretary of State for
                   the Environment in accordance with Section 123 of the Local
                   Government Act 1972.

         2.7.      If the agreed method of disposal is by formal competitive tender,
                   then the following steps must be taken:

                   2.7.1. An advertisement must be placed, which describes the
                            property to be disposed of, states where further details can
                            be obtained, invites tenders and gives a closing date for
                            receiving the tender, being a period of at least 14 days. The
                            advertisement must seek to reach the largest number of
                            potential purchasers by being placed in at least one
                            newspaper or journal likely to be read by people interested in
                            the property. The advertisement must be placed in at least
                            two newspapers and/or journals, which is likely to be read by
                            bodies involved in property or development.




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                   2.7.2. The receipt and opening of tenders must be carried out in
                            accordance with the Contract Procedure Rules, except in
                            cases referred to in 2.7.3 below.

                   2.7.3. If the Head of Property Services is of the opinion that a
                            tender other than the highest should be accepted, the
                            reasons must be fully documented. If the Head of Property
                            Services thinks that no tender represents the best price
                            which can reasonably be obtained, he or she must consider
                            re-tendering the property concerned, or other method of
                            disposal.

                   2.7.4. If the highest tender is received late or does not comply with
                            Council approved tender procedures then it will be the
                            subject of a joint report by Head of Property Services and the
                            Director of Governance and Law. The Director of Finance
                            will decide the appropriate course of action.

3.       Acquisition of Property

         3.1.      All acquisitions of property (purchased or leased) are subject to the
                   Council’s Key Decisions Framework and governed by the Council’s
                   Financial and Contract Procedure Rules.              Acquisitions must be
                   approved by the Head of Property Services in consultation with the
                   relevant Portfolio Member and the Capital Strategy and Asset
                   Management Steering Group.

         3.2.      A report must be made to Management Board outlining the purpose
                   to which the asset will be put and must demonstrate that the
                   Service is able to fund all costs and expenses associated with the
                   acquisition. That report must be subject to consultation with the
                   Head of Property Services, the Director of Governance and Law
                   and the Director of Finance and must also contain advice that the
                   property to be acquired represents value for money and is suitable


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                   for the proposed purpose. As part of the Asset Management
                   Planning process, all acquisitions will be detailed in the plan.

         3.3.      Prior to the Head of Property Services approving an acquisition he
                   or she must certify that the price and other terms are fair and
                   reasonable and are the best that can be achieved in the market.

         3.4.      Where a compulsory purchase order is recommended, approval
                   must be sought from Full Council.

         3.5.      A fully costed statement must support acquisitions involving
                   equivalent reinstatement or accommodation works and the Head of
                   Building Consultancy must agree that the statement is reasonable.

4.       Management of the Council’s Investment Property

         4.1.      The Head of Property Services is responsible for the following.

                   4.1.1. Grant leases or licences for a term of 5, 7 or 10 years (up to
                            a maximum of 25 years if previously let or licensed) in
                            respect of any Council property or land holding.

                   4.1.2. Settle the terms for all rent reviews or lease renewals, arising
                            under existing leases, and to approve the appointment of an
                            arbitrator,   independent    expert       or     mediators         where
                            necessary.

                   4.1.3. Deal with all applications for consents required under
                            existing leases, (e.g. assignments, sub-lettings, changes of
                            use alterations) and settle any terms arising.

                   4.1.4. Issue Warrants of Distress to Certified Bailiffs in respect of
                            rent arrears or other due debts on any non-residential
                            property.

                   4.1.5. Settle the terms for compensation of dilapidations arising
                            from the ending of leases/licences in respect of all types of
                            property.

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                   4.1.6. Negotiate or accept surrenders of leases or tenancies or
                            agree minor variations or extensions to the terms thereof.

                   4.1.7. Approve, in consultation with the Director of Finance,
                            arrangements for the acceptance of financial offers in
                            relation to sums due and outstanding to the Council in
                            respect of non-residential rents and service charges, etc.

5.     Responsibility for Property Compensation

         5.1.      The Head of Property Services is responsible for the following:-

                   5.1.1. Deal with Home Loss/Disturbance payments under the Land
                            Compensation Act 1973 and the exercise of the Council’s
                            discretionary powers under Section 37 (5) of the Act.

                   5.1.2. Deal with well-maintained payments under Schedule 23 of
                            the Housing Act 1985.

                   5.1.3. Settle the amount of         a 90% advance payment of
                            compensation authorised by the Land Compensation Code
                            in circumstances where such a payment has been
                            requested.

                   5.1.4. Decide the amount of the sealed offer to be made in
                            compensation claims to the Lands Tribunal.



6.     General Property Management

         6.1.      The Head of Property Services is responsible for the following:-

                   6.1.1. Settle the terms of compensation in connection with
                            Discontinuance Orders and Stop Notices.

                   6.1.2. Provide all property valuations for appropriations, stock
                            transfer, balance sheet, statutory, subsidy, internal rate of



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                            return and grant purposes and to determine transfer, asset
                            or inter service rents.

                   6.1.3. Conclude      rights   of   way,   easement         and      way      leave
                            agreements with statutory undertakes, public utility and
                            telecommunications companies           and      adjoining property
                            owners.

                   6.1.4. Make planning applications for marketing purposes.

                   6.1.5. Arrange for the removal of persons/s or effects occupying or
                            present on Council premises without authorisation.

                   6.1.6. Lodge objections/proposals and pursue rating appeals in
                            respect of Council premises where an over assessment
                            seems probably.

                   6.1.7. Settle the terms for the modification or release of restrictive
                            covenants in freehold titles and leases in respect of matters
                            considered to be uncontroversial.

7.       Appropriations

         7.1.      Some property is used for particular purposes according to law.
                   Transferring land from one such use to another is called
                   'appropriation'. If any property is to be appropriated, then it must be
                   recorded in the Council’s Asset Management Plan and a report
                   made to the Executive Director(s) whose services are involved. The
                   relevant Executive Director (s) will be responsible for approval of
                   the proposal in consultation, as necessary, with the relevant
                   Portfolio holders.

8.     Capital Receipts

         8.1.      All capital receipts generated from the disposal of Council
                   property/properties will be allocated to the Capital Budget.



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