5 September 2012 - East Devon District Council

Agenda Item 14
Cabinet
5 September 2012
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Shared ownership properties lease extensions
Summary
This report considers the issue of shared ownership leases in properties where the Council
has retained an equity share. The leases granted at the time made no provision for
extensions, but some twenty plus years after issuing leases some of our residents are
requesting an extension to their lease.
The report proposes a method of extending leases on request for a reasonable charge.
Recommendation
Agree to extend Council shared ownership leases when requested to do so using
the methodology set out in the report.
a) Reasons for Recommendation
We have been approached by one of our shared owners for an extension to their lease
and need to adopt a policy position that can be applied to all leaseholders in a
consistent and fair way.
b) Alternative Options
Options are given in the report for consideration.
c) Risk Considerations
The risk is mainly with the residents although there is a reputation risk for the Council if
we refuse to extend leases.
d) Policy and Budgetary Considerations
These are set out in the report.
e) Date for Review of Decision
April 2013.
1 Background and issues for consideration
1.1 The Council owns an equity share in 22 properties in Chambers Close, Sidmouth.
The properties were constructed in 1991 and a 70% share sold to shared ownership
purchasers with the Council retaining 30% equity. A 99 year lease was granted to
all purchasers at the time of the sale.
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