Future of council-owned White Horse pub in Gosport that makes taxpayers just £135 a year hangs in the balance as decision is put off
The pub is owned by Gosport Borough Council but only brings in £135 year for the public purse due to an old lease
A decision on the future of a pub has been put on hold.
Members of Gosport Borough Council’s Policy and Organisation Board voted to defer a decision on the proposed sale of the council’s freehold interest in the White Horse Inn at a meeting on September 30.
Councillors had been asked to approve the sale of the freehold to Admiral Taverns for £140,000 after officers concluded it was a poor-performing asset despite its longstanding place in the community.
However, the board unanimously agreed to postpone the decision and request further information before deciding whether the sale should go ahead. The council currently receives just £135 a year in ground rent from the pub on Nobes Avenue under the terms of a lease dating back to 1954.
A report to councillors stated that the authority’s freehold interest was valued at around £90,000, meaning the £140,000 offer represented a “significant premium” above its estimated value.
The report also said there are 27 years remaining on the lease, but noted that the tenant has legal rights to seek a new lease when it expires, meaning there is no guarantee the council would regain control of the site in future.
Following the meeting, council leader Cllr Zoe Huggins said members wanted more information before making a final decision.
She said: “As a council we are committed to delivering the best possible value for residents while protecting important community assets and supporting local businesses.”
The council said the arrangement with the watering hole dates back more than 70 years, when it granted a 99-year lease, and the tenant paid for the construction of the pub.
The authority said it had explored changing the lease but that Admiral Taverns had made clear its preference was to buy the freehold.
According to the council, the company believes ownership of the freehold would give it greater confidence to invest in the pub and support its long-term future.
The proposed deal would also include a clause allowing the council to receive 15 per cent of any increase in the site’s value if it is redeveloped within the next 15 years.
The sale proposal is expected to return to councillors once the additional information requested has been provided.