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”).