I got the impression (possibly wrong) that it was being handed over to a private group to repair / restore. If that's wrong then yes, my comment is invalid..
You're not wrong, Spey powered Phantoms cannot be given away to civil organisations under the original contract, hence the reason that XV420 got the chop at Neatishead in 2005 instead of going to the Radar Museum located right next door to where it was parked. What is most likely happening here is the aircraft will loaned to the private group but will still belong to MoD and in this case be kept on MoD Land (as is the rest of the Wattisham Preservation group's collection). Tangmere, Duxford and Solway are the only British civil museums to have complete Spey powered Phantoms on non MoD land, and the Duxford one is the only one that definitely civil owned (It was sold before the Yanks kicked up a stink about the disposal organisation not reading the rules laid down in the original contract). Tangmere's one is on loan from the RAFM and I assume that Solway's is also technically the MoD's as well.