Decision

To instruct legal to prepare and enter into a reversionary lease to XXXXXXX, Durban Road, Bognor Regis, West Sussex, PO22 9RU

The lease will be outside the 1954 Landlord and Tenant Act, as per the existing lease. The lease will be for a term of 10 years commencing upon expiry of the existing lease (26th April 2027) with no breaks, at a rent of £10,637 per annum. There will be an upwards-only rent review at the 5th anniversary.

Reasons for the decision

The reversionary lease has been agreed as part of the negotiations for the 2025 rent review. By agreeing to the new rent of £10,637 per annum, the tenant requested a reversionary lease which presents further security for the council, whilst also providing an increase in rental income which is above the market rent.

Alternative options considered

N/A