Section 127(2) of the Local Government Act 1972 requires a parish or community council proposing to dispose of land at less than the best consideration to have the consent of the Secretary of State or Welsh Ministers (unless it is for a short tenancy). Under the General Disposal Consent England (2003), and the General Disposal Consent (Wales) 2003, the disposal may be for less than the best consideration if the council: ‘considers [the disposal] will help it to secure the promotion or improvement of the economic, social or environmental well-being of its area.’ Consent from the Secretary of State or Welsh Ministers can also be sought in individual cases.
'Land' is defined in section 270(1), unless the context requires otherwise, to 'include any interest in land and any easement or right in, to or over land'. Consent therefore appears to be required to grant an easement over the land (such as for access to premises, for parking, or for laying of services), as well as to dispose of the land itself.
In order to identify the value of any disposal, the council should appoint a professional, independent surveyor (independent of both the council and the person seeking the disposal) to prepare a report. The council ought to be able to recover the costs of the report, and any professional advice taken during negotiations on value, in the price of the disposal. It is the council's duty to obtain best consideration unless the disposal otherwise qualifies under the general consent (or a specific consent is sought). Even if the council’s intention is to offer a discount from the market value on account of securing ‘the promotion or improvement of the economic, social or environmental well-being of its area’, the council should be advised on what the disposal is worth, and the value of the discount, in arriving at a decision.
Section 127(3) applies section 123(2A) and (2B) to parish and community councils, so that an intention to dispose of land forming part of an open space must be advertised and objections considered. Again, it should be possible to recover the costs of advertising in the price of the disposal. The council should not enter into any commitment until it has advertised its intentions and considered any objections.
The council should be satisfied that the terms of any disposal are drafted in the interests of the council, parishioners and any persons entitled to rights of common. This is particularly important where an easement is granted. Professional advice should be sought. Again, these costs should be recoverable.
Any works on common land arising from the disposal (such as the construction of a new access road) may also require consent under s.38 of the Commons Act 2006.