Decision

To serve a section 25 notice to renew the grant of a new lease of Crusader Hall, Stoke Park, Guildford, GU1 1TU and to proceed to complete a new lease on the terms set out below.
The current lease is protected under Part II of the Landlord and Tenant Act 1954 (the Act) and the contractual term is due to expire on 30 September 2026. A notice under Section 25 of the Act must be served to bring this contractual term to an end. The notice must indicate whether the Council is prepared to grant a new term, and if so, the basic details must be quoted. If the Council is not prepared to grant a new term, then the statutory reason must be quoted.
The Council will incur a loss of rental income while the property remains unoccupied should the tenant decide not to renew their tenancy, and additional costs in re-letting the property to another tenant.
The proposal is that a new lease be granted broadly on the same terms as the current lease with the following changes:
The rent is to be increased from £1,450 to £28,500 per annum based on the external valuation of the market rent without the restriction to 5% of the market rent being payable by the tenant, which in accordance with the Council’s General Disposal Consent powers, provides the ‘best consideration reasonably obtainable’ where the proposed term exceeds seven (7) years.
The tenant is The Crusader Union Limited.
The new agreed term is 15 years.
The rent will be payable monthly in advance on the 1st day of the month and subject to rent review on the 5th and 10th anniversaries of the term based on changes in line with the increase in inflation (CPI or equivalent) over the period from the date of commencement of the lease to the first review date and the subsequent review date.

Reasons for the decision

To deliver co-ordinated landlord function for lease management activities including compliance with statutory requirements.

Alternative options considered

None