Money raised from the auction of a rubbish-strewn Angus property will be “swallowed up” before the local authority can reclaim costs, it has emerged.
The former Monikie home of Alexander and Moira Ewart, dubbed the Steptoe House during almost a decade in the public eye, has been sold to an undisclosed bidder for just over £100,000.
Around £32,000 was spent by the council over the course of nine years in an attempt to force the clearance of skip loads of rubbish, abandoned cars and boats at Broomwell Gardens.
But councillors have been advised the local authority stands some way behind Halifax Bank of Scotland (HBOS) in a list of creditors.
At a meeting of the development standards committee, Councillor Bill Bowles asked officers if the council will receive any money back.
“I understand the property was sold for in excess of £100,000,” he said.
“Do you have any idea where we are on recovering the £32,000 from the proceeds of that sale, or where we are on the creditors’ list?”
A senior officer said any recovery would be more likely down the legal route.
“The secure creditor is HBOS, who has the security over the property,” he said.
“My understanding is security will swallow up most of the amount that was recovered from the sale.
“Together with the sequestration fees I don’t think there will be very much to be realised towards the council and there are other avenues we could explore regarding the recovery of the debt and we intend doing so.”
Mr Bowles asked whether the property will remain on the enforcement list now that it has new owners.
Committee convener Bill Duff said he believed the property will remain on the list until it has been cleared, which was confirmed by officers.
The sale, by Future Property Auctions in Edinburgh on September 18, had been described as a “momentous day” for committee members who have followed the infamous property’s descent into wrack and ruin since 2005.
The Ewarts each received 18-month jail sentences in 2005 after being convicted of a fraud involving £50,000 from the estate of an elderly relative.
More than 20 skip loads of material were cleared from the garden in 2007 after it was described as looking like a scene from Steptoe and Son by one councillor.
During the drawn-out enforcement affair the local authority twice took direct action to remove tonnes of material from the property.
A 40-tonne crane was even brought in to lift out some of the five boats stored at the property. The bill for the clean-up came to £16,146, with more than £3,000 of interest accruing since then.
Despite further council enforcement and court interdicts, a second wave of direct action had to be carried out in 2009, adding almost £13,000 to the council’s costs.