1. For
£1 the Council will:
a.
acquire from Langley House Trust
(LHT)chi the freehold of Leonard Stocks Centre, Factory Row,
Torquay, TQ2 5QQ, with title numbers DN92495, DN127386 and DN198718
(the “Property”) together with any estate, right
and interest LHT may have in adjoining land shown coloured green on
the attached plans 1 and 2; and
b.
take a surrender of that part of the
Leonard Stocks Centre with title number DN565544 which LHT hold on
long lease from the Council.
2. An
agreement whereby the Council manages the property on behalf of LHT
will terminate. The acquisition will be
subject to the rights of LHT’s clients remaining in
occupation under licences.
3. In
consideration of the sum of £10, the Council will enter a
Deed of Covenant with LHT and Homes England. Under the Deed of
Covenant, the Council will assume the responsibilities of LHT under
a Deed of Variation of Grant Agreement between Homes England and
LHT dated 28 March 2022.
4. Under
the Deed of Covenant, the Council covenants that:
a. it will
notify Homes England of the land transfer within 5 Working Days of
its completion;
b. it shall
not use the Property for any purpose other than as supported
housing for individuals that are homeless;
c. it will
apply to the Land Registry for entry of a restriction in the
proprietorship register of the title of the Property;
d. it will
notify Homes England of any Relevant Event as defined in the
Recovery Determination of The Recovery of Capital Grants and
Recycled Capital Grant Fund General Determination 2017; and
e. it will
notify Homes England of any breach of the covenants.
5. Where
the Council breaches a warranty and/or a Relevant Event occurs, the
Council may become liable to Homes England for the sum of
£1,275,00 (“Initial Grant Amount”).
6. Where
the Council decides to dispose of the property within 10 years from
the date of the land transfer (referred to in 4 a above), the
Council may become liable to Homes England for an additional sum
capped at £1,307,200 (“Additional Grant
Amount”).
