Archived decisions

Hampshire County Council

Executive Member, Policy & Resources Item

20 January 2005

Magistrates Courthouses - Transfer of Property

How the conclusion in this report fits in with the Corporate Strategy

This scheme will impact on the delivery of the following Corporate Aim

Aim 5 - Improving services by putting into place appropriate property ownership arrangements in response to The Courts Act 2003.

1

Introduction

1.1

A Review of the Criminal Courts of England and Wales completed in 2001 recommended that a single centrally funded agency, as part of the then Lord Chancellor's Department, should replace both the Court Service and the Magistrates' Courts Committees (MCC's). The recommendation has been enacted by The Courts Act 2003 and with effect from 1 April 2005 MCC's will be abolished.

1.2

The Department for Constitutional Affairs (DCA) has prepared a Property Transfer Scheme for the transfer to DCA of property, rights and liabilities to which MCC's are entitled. Currently such property in Hampshire is held by the County Council. The Transfer Scheme is currently in draft form and the final version is awaited, but it is reasonable to expect that there will be few amendments from the draft.

2

Property Transfer Scheme

2.1

The main premise under the Transfer Scheme is that property used or occupied by a MCC or for a Magistrates Court function will transfer to DCA. The legal interest held by the County Council will transfer, usually the freehold.

2.2

Where the MCC occupies only a minor part of the property, then the Transfer Scheme allows for the grant of a lease of the relevant part to the DCA. The Scheme requires that, as a general rule, the lease be for a term of 999 years at a rent of a peppercorn. Where the MCC occupies the major part of a shared property, then the Transfer Scheme allows for the freehold to transfer and for a lease of the relevant part to be granted back to the County Council. The Scheme states that "circumstances in which there may be a lease back to the Authority are likely to be diverse and in many cases short-term interests will be appropriate". Where feasible, a freehold interest can be divided between the County Council and DCA.

3

Hampshire County Council Assets

3.1

In Hampshire, there are 10 courthouses which will transfer to DCA and these are identified in Appendix I. In all cases, the MCC has occupied the whole or a very significant majority of the property. Nine of the courthouses are held on a freehold basis and one, Aldershot, is held on a 999-year lease. In all cases, it is expected that the County Council's interest in the court premises will transfer to DCA.

3.2

There are a number of instances where the County Council should retain an interest in part. These are, for example, where there is a separate office building within the complex which is not occupied by the MCC, or where County Council staff use car parking spaces within the site. Details are provided in Appendix I and in each of these cases it is proposed to seek either retention of the freehold interest of the relevant part or the taking of a lease for the maximum duration available at a peppercorn rent.

3.3

At Eastleigh Courthouse, a small part of the building was, until recently, used by the Probation Service and is now vacant. Consideration has been given to a reuse of the accommodation by the County Council but it is poor quality first floor space with no lift access and it is concluded that it is not cost effective to convert the accommodation for such use. DCA has some preliminary proposals to reopen Eastleigh as an operational court and has said that only a short-term lease back could be offered. In the circumstances, it is now recommended that the whole property transfer to DCA with no lease back arrangement.

4

Consultation with local Member

4.1

It has been considered not to be appropriate to consult any local Members over this matter.

Recommendation

That:

Approval be given to conclude the transfer of property interests in Magistrates` Courts in Hampshire to the Department for Constitutional Affairs under The Courts Act 2003 on the basis that the County Council's continued use of parts of the assets to be transferred is protected by either retention of the freehold interest or taking a lease back in respect of the relevant parts, as set out in the report.

Courthouse

Interest to Transfer

Proposed retained Interest

Aldershot

999 year lease at peppercorn rent

None

Alton

Freehold

None

Andover

Freehold

Taking of lease back at peppercorn rent in respect of car parking area used in connection with Social Services Area Office

Basingstoke

Freehold

Freehold interest in respect of car parking area used in connection with Social Services Area Office.

Eastleigh

Freehold

None

Fareham

Freehold, together with access rights over adjoining Register Office site

None

Havant

Freehold

Freehold of separate Probation Office building and car parking area.

Lyndhurst

Freehold

None

Portsmouth

Freehold

Freehold of separate Probation Office building and car parking area

Southampton

Freehold

None