Sale of Property: Fairlea, 2 Le Clos de L'Ecluse, St. Brelade.

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A decision made (01/02/2007) regarding: Fairlea, 2 Le Clos de L’Ecluse, St Brelade – Sale of Property.

Subject:	Fairlea, 2 Le Clos de L’Ecluse, St Brelade – Sale of Property
Decision Reference:	MD-PH-2007-0007	Exempt clause(s):		None
Type of Report: (oral or written)	Written	Person Giving Report (if oral):		N/A
Telephone or e-mail Meeting?	N/A	Report File ref:		2056/1
Written Report – Title	Fairlea, 2 le Clos de L’Ecluse, Le Mont les Vaux, St Aubin, St Brelade – Sale of Property	Written report - author		P Tucker – Assistant Director Property Holdings
Decision(s): The Minister has approved the sale of Fairlea, 2 Le Clos de L’Ecluse, St Brelade, which was generously bequeathed by the late Mrs Vera Hutter (née Le Dain) for the benefit of all patients of the Jersey General Hospital, to Mr Steen Robert Lutz and Mrs Lynda Jayne Lutz (née Townsend) for £490,000 with each party responsible for their own legal fees.
Reason(s) for decision: It was the wish of the late Mrs Hutter that the bequeathed property be sold to allow the proceeds to be used for the benefit of patients at the General Hospital. Under Standing Order 168 (1) (a) and 168 (3) the Minister is required to notify the States of his decision to dispose, acquire, let or rent land on behalf of the Public of Jersey. The offer is recommended as fair and proper being in excess of the independent professional valuations. The proceeds from the sale are to be used towards the immediate provision of a new ENT, Audiology and Eye Department in memory of the late Mr and Mrs Hutter.
Action required: The Director of Property Holdings to request H M Attorney General and the Greffier of the States to pass any contract that is necessary for the sale of the property. In accordance with Standing Order 168(3) of the Standing Orders of the States of Jersey, this decision must be presented to the States at least 15 working days before the contract is passed before the Royal Court. The Treasurer of the States to receive the proceeds of the sale of the property which are to be used for the benefit of patients of the General Hospital at the discretion of the Minister for Health and Social Services, in accordance with the wishes of the late Mrs Vera Hutter.
Signature: (Assistant Minister)[1] Deputy J Le Fondré			Date of Decision: MD-PH-2007-0007 1 February 2007

Sale of Property: Fairlea, 2 Le Clos de L'Ecluse, St. Brelade.

TREASURY AND RESOURCES – PROPERTY HOLDINGS

Report to the Minister

2056/1 30 January 2007

Fairlea, 2 Le Clos de L’Ecluse, Le Mont les Vaux, St Aubin, St Brelade

Sale of property

Purpose

To ask the Minister to agree the sale of the 4 bedroom house known as Fairlea, St Aubin, that was bequeathed to the Public Health Committee for the benefit of all patients at the Jersey General Hospital by Mrs Vera Hutter.

Background

Mrs Vera Hutter (née Le Dain) died on 27 September 2005. Under the terms of her Will, Mrs Hutter bequeathed her personal property (with the exception of jewellery and silver items) to the States of Jersey Public Health Committee for the benefit of all patients of the General Hospital, as the Committee or the Administrator should think fit. It was her wish that the gift should be acknowledged by an appropriately inscribed plaque at the hospital. The monetary value of the personal property amounts to approximately £500,000.

Under the terms of a codicil to her Will, the late Mrs Hutter also bequeathed her real or immovable property to the Public Health Committee on similar terms. This comprised the property known as Fairlea, 2 Le Clos de L’Ecluse, Le Mont Les Vaux, St Aubin, which was registered in the Public Registry on 24 January 2006, transferring title to the Public in the person of the Minister for Health and Social Services.

It was also a condition that when the property was to be sold, it was to be offered in the first instance to a member of the family at its open market price. If declined then it was to be sold without public viewing or auction.

Fairlea is a detached two storey brick built house with adjoining single storey double garage in a small close of four similar properties. It comprises four bedrooms, kitchen, lounge/diner, utility room and two bathrooms with a large walled garden and driveway.

The property, whilst structurally sound, is in a poor state of decorative repair with dated original kitchen and bathroom fittings. Windows, electrical wiring, bathroom and kitchen fittings are all in need of repair or replacement.

Over the past year, the property has gradually been cleared of its contents. Together with some minor maintenance, the garden has been maintained latterly by the Health and Social Services Department.

Valuation

An independent valuation of the property, undertaken by Gaudin and Company, has valued the property in its un-refurbished state at £475,000, when allowing an estimated £10,000 for repairs and redecoration. This confirmed the valuation previously undertaken internally by Property Holdings.

In accordance with Mrs Hutter’s wishes, the property was offered through the Executor of the Will to members of the family. An independent valuation undertaken by another local firm of Estate Agents and Valuers on behalf of the family, indicated a range of values between £450,000 and £475,000 for the property in its existing condition. Subsequently, Property Holdings were informed that no member of the family wished to purchase the property at that price.

Disposal

Initially, consideration was given to basic refurbishment of the property before advertising it for sale on the open market, but the Executor of the Will advised that she had been approached by an interested purchaser.

After further negotiation, a cash offer of £490,000 has been made by Mr and Mrs S Lutz for the property in its present condition without any refurbishment. The Executor of the Will, has confirmed that she would be happy for the Minister for Health and Social Services to accept this offer.

Property Holdings, with benefit of independent professional valuation advice, believe this offer should be accepted as being a very fair offer which avoids further agents fees and the costs of refurbishment.

Use of the Bequest

The Minister for Health and Social Services, together with the Chief Executive and Director of Estates at the Department, have confirmed their acceptance of the offer, the proceeds of which, together with the £500,000 from the late Mrs Hutter’s personal property and sale of stocks and shares, are to be used in the relocation of the proposed ENT, Audiology and Eye Department at the General Hospital.

This has the full support of Miss Margaret Stone, as niece of Mrs Hutter and Executor of her Will. An inscribed plaque, with photographs of Mr John Hutter and Mrs Vera Hutter, will be placed in the new facility, as set out in the conditions of the Will.

Conclusion

The Public of the Island will benefit greatly from this very generous bequeath by the late Mrs Hutter, in providing this much needed new ENT, Audiology and Eye Department at the General Hospital. With the sale of ‘Fairlea’ a sum of almost £1.0 million will be immediately available for the completion of the project, which has the support of the family.

Based on the two independent professional valuations of the property, the cash offer of £490,000 by Mr and Mrs Lutz is considered by Property Holdings to be a good one which enables the passing of contract to be completed reasonably quickly, without further expenditure by the Public on the property or agents fees.

Recommendation

It is recommended that the Minister, in acknowledging the generous bequest of the late Mrs Vera Hutter, approves acceptance of the offer of £490,000 (four hundred and ninety thousand pounds) by Mr Steen Robert Lutz and Mrs Lynda Jayne Lutz (née Townsend) for the freehold of the property known as Fairlea, 2 Le Clos de L’Ecluse, St Aubin, with each party responsible for their own legal costs in respect of the transaction.

Report written by Paul Tucker 30 January 2007

Assistant Director – Property Holdings