Decision

To grant and authorise Legal Services to execute a
new lease to X on the basis of a new 15-year business lease of Unit 3, Mountbatten Court,
Bognor Regis, X commencing 29 September 2026 on effectively full repairing and insuring terms, with the tenant responsible for repair and decoration and the Council recovering insurance costs.
Rent has been agreed at £10,000 per annum in
Years 1 and 2, rising to £10,500 in Years 3 and 4 and £11,000 in Year 5, with open market rent reviews at the 5th and 10th anniversaries. The lease contains no break option, no incentive package or rent-free period, and both parties will meet their own professional costs.

Reasons for the decision

To maintain formalised occupation and income for the site on a commercial basis.

Alternative options considered

1) Not to renew the lease. This option would leave
the property vacant with no use, a loss of income
and maintenance responsibilities reverting to
the Council.
2) Allow the lease to continue ‘holding over’. Terms
would remain, preventing rental uplift and
leaving the matter unresolved and requiring
future attention.
3) Vacate the tenant and remarket. The tenant is
protected by Landlord and Tenant Act 1954,
meaning termination is restricted to certain
conditions, none of which the Council would
meet at this time (e.g. redevelopment/own
occupation).