Cati Johnstone
- Solicitor
Insights | Charities & Third Sector
KLTR’s OPTS: Six months on
24 October 2024
1 September 2024 marked 6 months from the launch of The King’s and Lord Treasurer’s Remembrancer (KLTR) innovative Ownerless Property Transfer Scheme (OPTS), and so we thought it would be interesting to look at the initial successes.
Anderson Strathern is proud to have been the legal team behind the first successful case under the OPTS. Our team’s dedication and expertise have helped pave the way for this groundbreaking initiative, demonstrating our commitment to supporting community-driven projects and fostering positive change across Scotland.
What is the OPTS?
The KLTR encounters a wide variety of ownerless (bona vacantia) property and they must consider how to deal with such properties. In addition to that which is commercially valuable, the KLTR is required to consider their interest in ‘Abandoned, neglected or detrimental land or property’ (ANDL) with the ultimate aim being to facilitate the transfer of ANDL to interested community groups and public bodies. ANDL properties are sold at a nominal price, often well below market value, with the hope that such properties will be regenerated into areas of amenity or useful facilities for the local community. Collaboration among community members, local authorities, and other interested parties is encouraged through the scheme – by working together, these groups can determine the best uses for OPTS properties, ensuring they provide the greatest benefit to the community.
To support the decision-making process, the KLTR has established the OPTS Advisory Panel. This panel includes representatives from key sectors such as Crown Estate Scotland, the Convention of Scottish Local Authorities (COSLA), Glasgow City Council, Highlands & Islands Enterprise, and the Scottish Land Commission. The panel’s role is to review the cases put forward for the OPTS and offer advice as to whether the cases meet the criteria and ensure that key sectors continue to play a crucial role in implementing the scheme.
Successful cases
Since its launch 6 months ago, Anderson Strathern has successfully completed 2 OPTS disposals to Local Authorities – the first of which was the former Royal Hotel in Slamannan.
The Royal Hotel, constructed in 1866 in the village of Slamannan, had been vacant for over 20 years, succumbing to natural degradation and structural issues. Extensive enquiries revealed that the last known owner had been struck off the register, classifying the property as “ownerless” and falling to the Crown as bona vacantia.
Brought to the attention of KLTR by Falkirk Council in February 2023, the property was identified as suitable for the pilot OPTS. Falkirk Council had already consulted with the community and planned to transform the land into a picnic area. With secured funding, a suitable business plan and evidence of public benefit, the application was fast-tracked.
The property was successfully transferred to Falkirk Council on 11 March 2024, for the nominal sum of £1 plus KLTR costs.
Closely following on from the success with the former Royal Hotel, there was the transfer (under OPTS) of a strip of land at Halmyre Street, Edinburgh to the City of Edinburgh Council (CEC).
This strip of land was left over from a housing development near Leith Walk in Edinburgh and was identified by the CEC for use as an access road to a proposed affordable housing development. After discovering that the previous owner had dissolved, CEC approached KLTR to take ownership of the land. The OPTS process was streamlined, and the property was transferred to the City of Edinburgh Council on 28 August 2024.
The latest success was at the site of a former filling station on Smallburn Road, Muirkirk, which had fallen into disuse after the company that owned it was dissolved in the late 1990s. Notified by a local constituent, the KLTR commenced the OPTS process. An interested community group, supported by East Ayrshire Council, plans to transform the site into a picnic stop. The KLTR issued a decision letter in favour of the community group and they acquired the Property on 19 September 2024.
Ongoing cases
Following these successes, Anderson Strathern remains committed to supporting this innovative scheme, with two ongoing cases:
A Grade A listed building designed by David Hamilton at Campsie High Kirk had stood roofless and dilapidated since a catastrophic fire in 1984. Brought to the KLTR’s attention in May 2022, the property was deemed suitable for the OPTS. A newly formed community group has expressed interest in restoring the Kirk for use as a community events space. The KLTR has issued a decision letter in favour of the community group, and we are currently instructed on the transfer.
There are a few sites on which the KLTR are currently considering applications under the OPTS and we await their final decision. One of which is Lion Chambers, a derelict, category A listed building at 172 Hope Street, Glasgow, which holds significant historical value. While businesses occupy the street level and several other floors, there are others which remain ownerless due to the dissolution of the companies which owned them.
Alternative endings
As can be expected, not every case that is put to the KLTR to be considered for the OPTS process is going to meet the required criteria, however, that does not mean that the approaching public body or community has not found assistance within the scheme. A good example of this was the application for a basement flat at Ferryhill Terrace, Aberdeen. The Ferryhill Terrace was initially reported by a private individual due to concerns about dampness. Aberdeen City Council, which had placed a charging order on the property, expressed interest in taking ownership to prevent further deterioration, however, following investigation it transpired that the property was not bona vacantia (albeit neglected and apparently abandoned). Given the non-bona vacantia status and the Council’s outstanding charging order, the KLTR waived any interest, allowing the Council to recover outstanding debts.
Although the property could not be transferred to the Council through the OPTS scheme, the reporting of the property allowed the KLTR to disclaim their interest which in turn provided the Council with a solution to their recovery of the outstanding debts. This is a textbook case that we often come across when reporting on bona vacantia applications, where the status of the property is uncertain. However, it also showcases how the KLTR are keen to promote collaboration among community members, local authorities, and other interested parties and by working together, these groups can identify the best solution for complex issues.
Overall outlook
The first six months of the OPTS scheme have proven it to be a successful and innovative approach to managing ownerless properties in Scotland. Even in cases where the outcome has not been a transfer to a public body or community, the scheme has facilitated practical and beneficial outcomes. It is exciting to see communities engaging in transforming these rundown and abandoned properties into spaces that will be enjoyed and appreciated by local residents for generations to come. Being part of the OPTS process that allows for such transformative projects has been a privilege for those involved at Anderson Strathern.
Should you have any queries regarding the OPTS or any issues raised in this article, please get in touch with jon.mcgee@andersonstrathern.co.uk or cati.johnstone@andersonstrathern.co.uk.
More Information
Those interested in the OPTS scheme can find more information at www.kltr.gov.uk/ownerless-property-transfer-scheme-opts/