A deal between McLaren, Surrey County Council and Woking Borough Council could potentially pave the way for the bankrupt authority to sell its headquarters.

McLaren is to pay off its leasehold interests in Victoria Gate, Chobham Road, which in turn will allow the borough to sell the freehold to Surrey County Council.

The result is a large windfall for the borough, both through the sale and the increased footfall in the town centre from the 600 staff that the county plans to relocate from Quadrant Court in Guildford Road.

The deal also includes a condition that secures Woking Borough Council an option to occupy the fourth and part of the fifth floors of Victoria Gate, although it said it would only exercise this option if it proved to be “the most cost effective solution”.

The financial details have so far been kept private.

However the public papers read: “Although it is not currently considered a likely scenario Woking Borough Council has secured the ability to share occupation of the building by triggering an option to do so any time up to three months post completion of the sale.”

Woking will also rent out about 250 car parking spaces to the county, generating additional income.

Cllr Ann-Marie Barker, leader of the council, said: “McLaren moved into this space a little before the lockdown and Covid period. They’ve found their business model has changed and they don’t need all that space any more.”