Issue details

Background

The council undertook a survey of its council housing stock in 2004 to determine how much investment was required for  properties to meet the decent home standard and it was found that the structural condition of the Airey (Pre fabricated) properties meant that they would not meet the Decent Homes standard, without considerable investment. Therefore, redevelopment was agreed as the most cost effective solution for those Airey sites with redevelopment potential. The Airey properties, at Churchfield Avenue, Sunderland’s Avenue, Holme and Dale Way Sawston were agreed as having this redevelopment potential.  As the Council were not developing council homes at that time a consultative tender process was undertaken and, Wherry Housing Association, which is now known as Clarion, were selected as the council’s preferred partner to undertake the redevelopment program in South Cambs. As part of this process the land owned by South Cambs was transferred to Wherry  (now Clarion) on a 125 year lease.  Following redevelopment Wherry should then have granted subleases on a shared ownership basis for a term of 125 years (less 10 days).

Purpose

South Cambs District Council transferred the land at Holme Close to Wherry Housing Association/Circle Anglia (now Clarion) on a 125 year lease from 22 December 2006 expiring on 21 December 2131. Unfortunately, Clarion found that the sub leases that were issued by them, for the shared ownership properties, were not compatible with the Head Lease, as these were inadvertently issued for a longer term than that of the Head lease. Therefore, Clarion have formally  submitted a request for a new lease to be granted to them (overriding lease), which will sit above the Head Lease and be for a term expiring on 21 April 2132.   This will ensure that Clarion’s interest in the properties at Churchfield Avenue, Sunderland’s Avenue, Holme Way and Dale Way Sawston, exceed that of the shared ownership leases.

The purpose of this decision is to allow us to approve Clarions request to grant an overriding lease  for   land that was transferred, as part of the airey properties redevelopment program at Churchfield Avenue, Sunderland’s Avenue, Holme Way and Dale Way Sawston, and allow us to instruct our legal team to do this.