Purpose

XXXXX occupied unit 1 from the 24 June 2019 on the following terms:-
Date of Lease 30 August 2019 (date lease signed)
Term Commencement 24 June 2019 (date of occupation)
Date
Term 15 years
Rental , quarterly in advance on usual quarter days.
Rent Free Period Up to , therefore rent was payable with
effect from .
Permitted use Use as a restaurant with ancillary bar and outdoor seating
and ancillary takeaway and delivery service or such other ancillary use within Class A5 (as defined before 31 August 2020) of the 1987 Order.
Service Charge and insurance recharge premiums are also due under the lease.
went into voluntary liquidation on 23 September 2024, were appointed as
administrators on the 7 October 2024 and completed the sale of certain assets to
on the 7 October 2024.
then granted a temporary Licence to Occupy Unit 1 to to enable
the business to continue to trade and discuss their longer-term strategy and occupation of the property with landlords.
The administrators pay the rent, insurance premium recharge & service charge due under the Lease on a monthly in arrears basis.
It was proposed to assign the remainder of the Lease to on the following
basis:-
• The outstanding rent review from the 26 March 2024 will be dealt with by external agents appointed by the Council once the assignment has completed. Which will be noted in the Licence to Assign
as outstanding.
• to pay Landlords reasonable costs in respect of the application
to assign.
• It has also been agreed that the rent will remain payable quarterly in advance in accordance with
the Lease, however, it has been agreed that to pay rent monthly
in advance on 1st or first working day of each month with effect from date of assignment of existing lease, this will be documented via a side letter drafted by Legal & Democratic Services. Each party to pay their own costs.
• All other terms as Lease to

Decision

To proceed with the Surrender of Lease from

Alternative options considered

Do nothing and wait for the administrators to disclaim the Lease, which is likely to take approximately 18 months, the administrators advised that any liabilities under the Lease including rent, service charge and insurance will not be paid for any period after the and will be rank as unsecured claim in the administration. This option is not recommended.