PRIZED civic assets across Scotland could be lost to private developers as controversial legislation on long-term leaseholds is resurrected by Holyrood, it has been claimed.
Land expert Andy Wightman said publicly owned property let on so called ultra-long-term leases – with more than 100 years still to run – could be sold to the leaseholders for a nominal sum.
This would mean assets that councils hold on behalf of citizens and protect from redevelopment could be under threat.
Mr Wightman, the author of Who Owns Scotland, and The Poor Had No Lawyers, said it would affect assets such as Waverley Market – now known as Princess Mall – in the heart of Edinburgh. It is publicly owned and shielded from development.
The law-change could see the 1.68 acre site sold to the current leaseholder, former Rangers owner Sir David Murray, who would assume ownership for a nominal sum.
What happens to the prime site will set a precedent that could affect many civic gems as about 9000 long leases are examined in Scotland.
Mr Murray stands to get a £50million prime city centre site for less than 40p as a direct result of the planned law change being relaunched by the Scottish Government.
The ultra-long-term leaseholds – some last 999 years – were introduced at the end of the 18th century to encourage industrialisation and are being modernised as they can pose legal problems for leaseholders in developing the sites.
It is understood Mr Murray's Premier Property Group (PPG) bought the leasehold on Waverley Market in 2004 from developers who acquired it in 1982.
PPG is thought to have paid £37m for the lease alone. The site brings in about £2m a year in rent from shops. The firm pays 1p a year rent to Edinburgh City Council.
The nominal sale sum for Waverley would be based on the 1p rental deal struck with the original developer in 1982 and if it went ahead early after the law was changed the cost would be expected to be under 40p.
The legislation has been revived after it ran out of time in the last parliamentary session.
Last night there were calls for the Government to prevent such sales involving publicly owned property, and while Holyrood said it would discuss compensation, The Herald understands such sums would be nowhere near the value of the property. Mr Wightman said publicly owned land – and in particular so-called "common good" land, specifically held in perpetuity by councils for the good of the community – should be exempt from the plans.
He said: "I am not pleased the legislation is being revived. If civic Edinburgh wants to leave a legacy [in Waverley Market] to future generations, it needs to put up a fight now."
He added: "If you have a clear ownership title it would give you more flexibility. Ownership would mean more freedom in selling and you could do anything you wanted with the site."
Leasing and pricing of Waverley – which is claimed to be common-good land by Mr Wightman – is the responsibility of Edinburgh City Council.
Green MSP and councillor Alison Johnstone said: "We need to ensure that Waverley Market has a specific exemption and isn't handed over to a wealthy business tycoon as a consequence of this legislation."
A council spokesman said the authority was aware of the proposed Long Leases (Scotland) Bill and its consequences.
A Scottish Government spokesman said the Government did not expect there to be a widespread issue over common good land, but officials have written to councils to discuss whether compensation for a lease on common good land could be paid into an authority's common good fund.
Mr Murray declined to comment.
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