Elmbridge's Cabinet approved letting Esher's Old Post Office to a local office firm on 27 October, over a nursery's higher bid. Call-in closes 9 November.
Elmbridge Borough Council wants to let the Old Post Office on Esher High Street to a local office business. The council-owned building at 81 High Street has stood empty since January 2025.
Updated 6 November: the Cabinet approved the disposal at its extraordinary meeting on 27 October, which lasted three minutes. The published decision takes effect on Tuesday 10 November unless it is called in by Monday 9 November. The sale still needs Section 24 approval from the East Surrey Shadow Executive.
The preferred bidder would take a 10-year lease, with an option to buy the freehold between years three and five. The council’s Cabinet will decide at an extraordinary meeting on Tuesday 27 October, starting at 5pm.
The Cabinet report shows the office bid was not the highest. A nursery provider offered to buy the building outright, which the report says gave “the strongest financial return to the council”.
Why the council prefers the lower bid
The report says the office lease would bring the building back into office use. That fits the council’s Esher Vision, which aims to bring people into the town to work and to increase footfall for shops and cafes.
It sets out the two final bids:
| Bidder one | Bidder two (preferred) | |
|---|---|---|
| Who | A nursery provider | A local office occupier |
| Offer | Buy the freehold | 10-year lease, option to buy in years 3 to 5 |
| Return to the council | The strongest | “Robust”, but lower |
| Risk of the building standing empty again | None after sale | Some |
If the tenant buys, the price is fixed at today’s market-tested valuation and rises with inflation to the date of sale. If it does not, the council keeps the building. The tenant is expected to invest in the building, and would get a rent-free period to fit it out.
The figures behind both bids, including the building’s current value, are in an appendix the council has kept private. It says publishing them could affect the deal.
The building and what it costs while empty
The council bought the Old Post Office in December 2013 for £2.08 million, as a fully let investment. The rent then was £125,000 a year. The report gives these details:
- about 7,114 square feet, with 20 parking spaces
- a traditional three-storey front building and a newer rear extension
- used for offices and shops over the years, most recently a retail showroom
Keeping it empty costs the council about £90,000 a year in business rates, utilities, security, inspections and maintenance. Once a lease starts, those costs would end.
Marketing drew interest from office, nursery, medical, residential and leisure users, the report says.
What happens next
A Cabinet decision is not the last step. Because Elmbridge is being replaced by the new East Surrey council in April 2027, the sale must also be approved by the East Surrey Shadow Executive before it can be completed. The council’s announcement of 19 October says the same.
The minutes record that the Cabinet backed the disposal to the preferred bidder. It delegated choosing the bidder and agreeing the final terms to the Deputy Chief Executive, with the Deputy Leader, the Head of Finance and the Monitoring Officer.
The bidder has not been named. The lease terms still depend on surveys, legal checks and an assessment of the tenant’s finances.
What it means for you
- The building should be in use again. An office tenant brings staff into the High Street every working day.
- It will not be a nursery. The council turned down the nursery’s higher purchase bid.
- The decision is made but not final. Cabinet approved it on 27 October. It takes effect on 10 November unless called in, and the East Surrey Shadow Executive must still approve it.
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