Issue - meetings

To approve the most appropriate future management arrangements for residential properties purchased by Downshire Homes Limited, with funding provided by Bracknell Forest Council.

RESOLVED that

i.       to consolidate the ownership and management of the Council’s housing portfolio by transferring (at market price) the Downshire Homes Ltd properties to the Council by March 2024 is agreed.

ii.     that the 4 properties currently occupied by tenants holding assured shorthold

tenancies (ASTs) are offered for sale to registered social landlords is agreed, noting that they will be included in the transfer of properties to the Council if sales cannot be secured in the timescale above.

iii.    to facilitate the consolidation in the most tax efficient way, supports the director(s) of DHL to progress a solvent liquidation of the company, through which its assets will transfer to the Council as shareholder and agrees to indemnify the directors, the company and the appointed liquidator against any potential claims arising from this act.

iv.    a key factor in the proposed approach will be the value of the existing

loans from the Council to DHL compared with their original purchase price and funding from Council loans and that current expectations based on indicative valuations of a sample of the properties are that the sums will broadly match;

v.     in the event that the value of the properties has increased materially at the time of the transfer compared with the original purchase price, its agreed that the Executive Director: Resources be authorised to use Council reserves to settle any resultant capital gains tax liability, as set out in paragraph 5.20.

vi.    the Legal Services Manager be authorised to conclude the appropriate legal

agreements to enact the proposals above.