Wood Lane – Options Appraisal (Retention vs Disposal)

1. Introduction

Following public consultation on the future of the land at Wood Lane, which showed majority support for retention, members are asked to consider the financial and governance implications of both retention and disposal options before reaching a decision. The Chair has provided indicative costings for each option. This report consolidates those figures, identifies potential funding sources, and highlights key statutory and governance considerations.

2. Summary of Options

Indicative One-Off Costs

Retention
• Solicitor (easement) – £1,750
• Surveyor (site survey) – £600
• Fencing, gates, ditch works – £8,000
• Signage & posts – £341
• Picnic tables (x2 accessible) – £1,070
• Groundsman works/materials – £375
• Bin provision & first year emptying – £590
Approx. Total: £12,726

Disposal
• Solicitor (contract & transfer) – £1,500
• Surveyor (valuation & site survey) – £800
• Advertising – nil or minimal
Approx. Total: £2,100

Ongoing Costs
• Weekly maintenance – £20 p/w
• Bin emptying – £340 p/a
• Possible replanting/tree care

None once sold (future maintenance liability transferred)

Potential Income / Funding Opportunities

Retention
• Your Fund Surrey – Small Projects Fund (£1k–£100k)
• Community Nature Recovery Grant (£500–£5k)
• Surrey Wildlife Trust – Wilder Communities Fund
• Local Borough Project Fund
• Local sponsorship or volunteer input

Disposal

• Sale proceeds (to be determined)
• Must demonstrate best consideration under s.126 LGA 1972

Covenants / Legal Constraints

Retention

• May require clarification or variation through Guildford Borough Council (if fencing or public access introduced)
• Must ensure no breach of restrictive covenants

• Same covenants to be disclosed to purchaser
• Council must evidence best consideration or obtain consent for undervalue disposal

Community / Reputational Factors

Retention

• Public consultation favoured retention
• Opportunity to enhance biodiversity and amenity
• Supports Council’s community and environmental objectives

Disposal

• Disposal contrary to consultation outcome may attract criticism
• Reduces open-space provision within the parish

Governance / Compliance

Retention

• Eligible for external funding
• Ongoing maintenance must be budgeted and risk assessed
• Compliance with Standing Orders and Procurement Policy required

Disposal

• Must comply with Section 126 Local Government Act 1972
• Ensure decision demonstrates best value and community benefit

Overall Observation

Retention

Provides long-term community benefit but carries higher initial and ongoing costs, potentially offset by grants and volunteer input.

Disposal

One-off income gain but potential reputational and community value loss; must evidence compliance with disposal legislation.

3. Additional Considerations

1. Community Consultation

- The consultation showed strong public preference for retention.

- Any decision contrary to this should be clearly reasoned and minuted to demonstrate transparency.



2. Biodiversity Net Gain (BNG)

- The site may have potential for habitat enhancement and could attract funding or offset schemes under the Environment Act 2021.



3. Future Maintenance and Risk
 - A maintenance schedule and annual inspection plan should be established, supported by risk assessments and budget allocation.

- Consider a “Friends of Wood Lane” volunteer group to share maintenance responsibility.



4. Insurance and Public Liability

- If retained and opened for public use, ensure public liability insurance, the asset register and inspection records are updated.



5. Access and Equality Compliance

- Any future works should comply with the Equality Act 2010 (e.g. accessible paths and seating).



6. Environmental and Social Value

- While the Public Services (Social Value) Act 2012 does not directly apply to parish councils, the principles of considering wider social, environmental and community benefit represent good practice and support the Council’s aim to demonstrate best value.



7. Asset of Community Value (ACV)

- If members feel the site holds long-term importance, it could be registered as an ACV to protect it from future disposal without consultation.

4. Legislative Context

• Local Government Act 1972, Section 126: Councils must obtain best consideration when disposing of land unless a specific consent to sell at undervalue is obtained.

• Localism Act 2011 – General Power of Competence: Decisions must demonstrate best value and community benefit.

• Public Services (Social Value) Act 2012: While the Act does not directly apply to parish councils, the principles of considering wider social, environmental, and community benefit represent good practice and support the Council’s aim to demonstrate best value in its decision-making.

5. Recommendation

That members note the cost comparison and funding opportunities outlined above and determine whether to proceed with retention or disposal of the Wood Lane site, taking into account:

- The results of the public consultation;

- Potential for external grant funding and community support;

- Long-term maintenance implications and liabilities; and

- The need to demonstrate best value and community benefit in line with statutory duties.

6. Alternative Ownership and Management Models

As part of considering the future management of the Wood Lane site, members may wish to explore options that enable ongoing community benefit while reducing the Council’s direct maintenance and cost liability. Two main approaches are available:

Option A – Establishing a Community or Charitable Trust

The Council could transfer ownership or grant a long lease to a community or charitable trust that would manage and maintain the land for public benefit. This would safeguard Wood Lane as a community space while transferring day-to-day responsibility, costs, and liability to an independent organisation.

Advantages:

- Reduces long-term Council costs and liabilities.

- Opens access to charitable and lottery grant funding.

- Demonstrates sustainable community partnership.

- Provides long-term protection for community use.



Points to Consider:

- Legal and registration costs in the region of £2,000–£3,000.

- Trustees must be independent and suitably qualified.

- A further community consultation is advisable before any transfer.

 This as a potential long-term management model and it is recommended that the council obtains outline legal advice on establishing a Charitable Incorporated Organisation (CIO).

Option B – Service Level Agreement with a 'Friends of Wood Lane' Group

As an alternative to full transfer, the Council could retain ownership and formalise a partnership with a local volunteer group (“Friends of Wood Lane”) through a Service Level Agreement (SLA). This would delegate routine maintenance and enhancement activities to volunteers while maintaining Council ownership, insurance, and strategic control.

Advantages:

- Simple and quick to establish.

- Encourages community involvement and stewardship.

- Reduces staff time and ongoing maintenance costs.

- Keeps strategic ownership and control with the Council.

Points to Consider:

- The Council must ensure adequate insurance and risk assessments for volunteer activities.

- Clear guidance on permitted activities and safety measures is essential.

- The SLA should be reviewed annually and allow for termination by either party.

- The Friends group may later evolve into a charitable trust if capacity increases.



7. Statutory Requirements When a Parish or Town Council Sells Land

Legal Power to Dispose of Land

A parish or town council’s power to dispose of land comes from:

• Section 126 of the Local Government Act 1972 (for land acquired for statutory purposes, e.g. open space, recreation); and

• Section 127 of the Local Government Act 1972 (for land not held for specific statutory purposes).

In all cases, the Council must demonstrate that the disposal achieves the best consideration reasonably obtainable, unless the Secretary of State’s consent is obtained for sale at an undervalue.

Best Consideration / Valuation Requirement

Under s.123(2) LGA 1972 (and applied to parishes via s.126/127):

“A council shall not dispose of land, otherwise than by way of a short tenancy, for a consideration less than the best that can reasonably be obtained.”

In practice:

Obtain an independent valuation (RICS surveyor) to confirm market value.

Keep the valuation and reasoning on file for audit and transparency.

If sale is below market value, specific consent must be obtained under the Local Government Act 1972: General Disposal Consent (England) 2003, which allows disposal at “less than best consideration” of up to £2 million undervalue, provided that the disposal promotes the economic, social, or environmental well-being of the area.

Disposal of Public Open Space – Statutory Notice Requirement

If the land is classed as public open space, additional steps are mandatory:

• The Council must advertise its intention to dispose of the land in a local newspaper for two consecutive weeks.

• It must then consider any objections received before completing the sale.
(Ref: Local Government Act 1972, Section 123(2A) – extended to parishes via Section 126(4).)


Keep copies of the notices, objections, and minutes recording their consideration for audit evidence.

Title, Covenants, and Legal Checks

Before sale, the Council must:

• Check the title deeds to confirm ownership and identify any restrictive covenants or rights of way.

• Verify if the land was originally gifted or held in trust, as this may restrict disposal or require Charity Commission consent.

• Instruct a solicitor to prepare the TR1 transfer and deal with Land Registry registration.

• Ensure that s.19 Local Government (Miscellaneous Provisions) Act 1976 requirements are met if the land includes recreational use, replacement land may sometimes be needed.

Council Decision and Process

• Disposal decisions must be made by Full Council, not a committee or officer (as land disposal is a major statutory function).

• The item must be clearly listed on the public agenda, with an accompanying report and supporting documents.

• The resolution to sell must be minuted precisely, showing the rationale, valuation evidence, and compliance with legislation.

• If the land is sold by tender or auction, the Council must follow Standing Orders and Financial Regulations for procurement-style processes (fairness, openness, and best value).

Transparency and Accountability

The following documents should be kept for audit and governance evidence:

• Council resolutions approving the sale.

• Copies of statutory notices and public consultation responses (if applicable).

• Valuation report.

• Solicitor’s completion documents (TR1, contract, etc.).

• Correspondence confirming best consideration or undervalue justification.

• Update its Asset Register and Insurance Schedule;

• Note the disposal in the Annual Governance & Accountability Return (AGAR);

• Use proceeds in accordance with council powers (e.g. to reinvest in capital projects or community benefit

Potential Additional Requirements

• Depending on the land’s nature and history, check:

• Charitable land: may require Charity Commission consent.

• Leased land: ensure break clauses or head lease terms permit sale.

• Common land or village green: disposal or deregistration requires DEFRA consent (Commons Act 2006).

• Environmental protections: if within a conservation area, AONB, or protected habitat, planning implications may arise.

Link to PDF here.