Easteds Barn Explained: Current Position and Next Steps

Southwater Parish Council is aware of a number of comments and questions on social media about Easteds Barn. This update is intended to share the facts, explain the process, provide reassurance, and outline what happens next.

Where things currently stand

• Easteds Barn is currently leased to Little Barn Owls Limited under a long lease that includes an option for the tenant to purchase the freehold. 

• Little Barn Owls have notified the Council that they intend to exercise this purchase option before it expires in March 2026. 

• In line with the lease, the Council has obtained an updated independent valuation from Crickmay Chartered Surveyors to inform the purchase price. 

• The Council has instructed its solicitors, Surrey Hills Solicitors, to advise and support the legal process.
  

The update given by the Executive Officer in open session at Full Council (19^th November 2025) was to ensure not only the Council and its councillors were informed at an early stage but for transparency, residents are also aware that the tenant intends to use the existing purchase option. No transfer of ownership has taken place yet. 

Has Easteds Barn been sold yet?

No.

• The freehold of Easteds Barn remains in the ownership of Southwater Parish Council at the time of this statement. 

• There are several formal contractual steps still to complete.   

If and when the sale is completed, this will be reported in public and recorded in the Council’s minutes. 

 

Why can’t we share the valuation figure yet?

Some residents have asked for the exact valuation figure and proposed purchase price. 

The valuation has been carried out by an independent RICS-registered surveyor in strict accordance with the terms of the lease. Until the legal process has concluded, the valuation and commercial terms are treated as commercially sensitive. This is standard practice for local authorities so that they can protect the public’s financial interests while a transaction is in progress. 

However, in the interest of transparency, the Executive Officer has contacted the Council’s solicitor to seek clarification as to whether the figure could be shared publicly.

Once the process is complete, the Council will be able to publish more detail about the transaction as part of its normal transparency and accounting requirements. 

What can the sale proceeds be used for?

If the sale proceeds, the money received will be a “capital receipt”. In simple terms, a capital receipt is money received from selling a long term asset, for example land or buildings. 

In accordance with national proper practices for parish and town councils, capital receipts from the sale of any fixed assets cannot be used for day-to-day running costs. They can only be used for capital purposes such as:  

• Purchasing or building new community facilities,

• significantly improving or refurbishing existing facilities, buildings or play areas, 

• investing in long term community infrastructure, for example paths, open spaces, outdoor gyms, play areas or recreational facilities, 

• making capital grants to support community capital projects run by other organisations, 

• repaying long term loans. 

The Practitioners’ Guide also confirms that councils may hold and invest reserves, including capital receipts, while they decide how best to apply them, provided they are properly recorded and earmarked. 

In practical terms this means:

• The proceeds of any Easteds Barn sale must be ring-fenced for capital projects or other eligible capital uses. 

• They cannot be used to subsidise day-to-day expenditure or to reduce the precept requirement in the annual budget. 

• Until the Council decides how to use the capital, the funds are most likely to be held in a fixed term high interest-bearing account in accordance with the Council’s adopted Investment Policy so that the Council and community gains from additional interest income in the meantime.
  

This position is already reflected in the Council’s adopted Business Plan, which notes that interest on any sale proceeds would help offset Easteds Barn rental income in the short term while longer term capital uses are considered. 

No decision made yet on how proceeds will be used

At this stage no decision has been taken on how any potential capital receipt from Easteds Barn would be used. 

• There is no approved project or resolution linking the proceeds of any sale to The Ghyll, Laurie Apted Building or to any other facility or specific project. 

• Any suggestions that the sale has been agreed to fund a particular project are speculative and not based on facts. 

• Once the outcome of the purchase option is known, the Council will consider options for reinvestment in community assets and capital projects via its Council meetings.
  

Residents will have opportunities to see and comment on any proposals through published agendas, reports, business plan and minutes before any significant decisions on spending are made. 

What happens next?

Over the coming months the Council will work with its solicitors to complete the legal steps in line with the lease requirements, and will report key milestones and decisions through council meetings and meeting minutes once able to do so.

It should be reiterated that the sale process and details of the valuation are considered commercially sensitive and hence further updates will only be provided once there is a clear outcome on whether the purchase completes and, if so, the confirmed net capital receipt. Residents are encouraged to come along to the councillor surgeries, usually held on the first Saturday of every month, except August, when the surgery doesn't run. The councillor surgeries provide an opportunity to anyone who wish to speak with their parish, district and county councillors. The next one will be held on the Saturday 10th January 2026 (due to the Christmas break), from 10AM in Beeson House.