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A win-win sell-off
• THE sell-off of 220 retail properties by Islington Council is now reaching its final stages.
At every stage of this process, affected businesses have had unexpected arbitrary procedural issues foisted on them by a Lib Dem executive that has little will to complete the property sale to the 130 interested businesses. Their preferred option has always been, as in past sales of council properties, to sell to one property developer.
They have claimed credit for the fact that 130 out of 220 leaseholders are still in the process. But this number is rapidly falling as many are finding it impossible to raise a mortgage.
The property values being demanded by the council are 50 to 100 per cent above the bank valuation of the properties. In addition, the council is imposing such extreme and unusual terms and conditions that banks are reluctant or unable to offer a mortgage to potential purchasers.
We have continued to challenge the council legally to ensure all leaseholders and ultimately the people of Islington are treated fairly and reasonably.
The response from the council on the unreasonable valuations of the properties which leaseholders are being asked to match was: “The council is not required by law to offer the properties at a fair market value, its obligation being to secure the best consideration reasonably obtainable.”
The council will not negotiate or consider any of our arguments in relation to the purchase of the properties. It has another purchaser, David Pearl of Structadene, who will be taking any properties not sold to leaseholders – so for the council it is a win-win situation.
It does not have to be fair and reasonable or even appear to be so. It will be £70 million richer by September. And it remains to be seen what this money will be spent on or whether it will be frittered away as it has been in the past.
DALE BARTER
Amwell Veterinary Surgery
Amwell Street, EC1
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