A church on the verge of transforming a dilapidated building into a community centre has had its hopes dashed after the price of the building increased by more than 400 per cent.

His Grace Outreach Church said it has paid £85,000 for the former Ashburton library site after being named as the preferred bidder for the premises by Croydon Council, after applying to convert it into a community centre, to include a youth club, food bank, a nursery, a lunch club for elderly people and a nursery.

Pastor Bola Thomas said legal agreements were signed by the council on May 21, the day before the election, and she said the church’s solicitor confirmed funds had been transferred to the council on May 28.

A week to the day of Labour taking control of the council, members of the church moved on to the site in Ashburton park to start clearing it of rubbish.

But later that night the pastor received a call about the building sale.

Pastor Thomas said: "I was informed by a senior council officer over the phone that the newly elected Labour Party said to put a hold on it."

It is believed this is because another building valuation has put the market price as more like £400,000 than the £85,000 for the 125 year building leasehold. Church members are now planning to go to as many council meetings as possible to try and get their point across as the pastor said they are not being listened to.

She said: "Their approach towards us has being very dismissive, condescending and derogatory because they have refused to talk to us and are treating us like aliens.

"We already have a binding legal agreement which was signed by the Croydon Council before the Labour Party took power.

"The Labour Party is denying the fact that they have signed their part of their agreement but we have a proof of this from their solicitor.

"Even as the preferred bidder and with a signed agreement Croydon Labour Party will not talk to us, they refuse to talk to us."

Culture, leisure and sport cabinet member Councillor Tim Godfrey said: “We listened to people who wanted to keep the hall and park together. “We have a very strong mandate from the people of Ashburton ward to do as we said we would in the election.

“It is important that politicians keep their promises.

“I'm sorry that His Grace Evangelical Outreach Church had got involved in such a controversial purchase, but we had been crystal clear prior to the election that we opposed this privatisation.”