Decision details

Exemption from publication: There are confidential appendices to this report, which are
exempt by virtue of paragraph 3 of Schedule 12A of Part 1 of Schedule 12a of the Local
Government Act 1972 because they contain information relating to the financial or business
affairs of any particular person (including the authority holding that information).

To transfer the freehold interest in 6 Holmer Place, Holmer Green, High Wycombe,
HP15 6TT to the current leaseholder at the agreed premium figure

The subject property comprises a bungalow constructed in the late 1980’s and is situated
within Holmer Green village in High Wycombe. The property was originally transferred on a
99 year leasehold in 1987. The estate is a retirement housing complex with resident
management staff and care support within the estate.
Under the current legislation once the leaseholders have owned their properties for more
than two years, they have the right to enfranchise, and the Council are obliged to grant this
right under the legislation.
This is a voluntary freehold transfer in line with Leasehold Reform Act 1967. Section 9 (1) of
the Leasehold Reform Act 1967 does not include marriage value, but is a simple exercise
sometimes referred to as the “entirety value approach”. The entirety value envisages the
most valuable property that could be built on the site given the constraints of the existing
planning regime. Often this is the existing house, but it must be assumed that it is newly
built and in commensurate condition. Following this, the proportion of this value
attributable to the site is identified and a rent based on an appropriate yield is calculated.
This figure is capitalised for the hypothetical 50-year lease term but is deferred by the term
of the existing lease. This value together with that of the capitalised ground rent under the
terms of the existing lease and that of the freehold reversion after the 50-year lease extension aggregate to the enfranchisement price, which has been offered and agreed with
the leaseholder.
The terms of the freehold sale are in line with the market and the relevant legislation. The
proposed sale will generate a capital receipt to support delivery of the Council’s services and
meeting the Council’s obligations under Section 123 of the Local Government Act 1972.

Leasehold extension granted – after
exploring this option the current leaseholder has decided it is more in their interest to
purchase the freehold.
Refuse to transfer freehold – the Council could decline a voluntary transfer of the freehold
all together, in which case the leaseholder could pursue the statutory route to purchase the
freehold which would result in higher costs to the council.