Purpose

Description:
The properties are located within the city centre on Portland Street, situated off the southern part of the High Street and approximately 500 metres to the south of Lincoln Railway Station, close to Lincoln Magistrates Court.

The properties comprise a block of four secondary retail units, being of Victorian construction built over two storeys in brick beneath pitched slate roofs. Internally the properties have not been well maintained and are in fair to poor condition. Numbers 22 and 26-28 have been vacant and unoccupied for several years and the condition appears to have deteriorated. Numbers 24 and 30 are currently tenanted, although 30 is let on a short-term lease to Lincoln City Council which is expected to
terminate by 31 March 2026.

The accommodation provides a total of approximately 1,169 sq.m (12,583 sq. ft) Net Internal Area.

Background:
The properties were previously declared surplus to County Council requirements in September 2023, and arrangements were made for an open market sale in the summer of 2024. Following a successful marketing campaign, the properties were sold (subject to contract) by means of informal tender and a sale agreed with Investors in Lincoln in the sum of £300,000.

The sale fell through in January 2025 due to Investors in Lincoln’s concerns at the cost of refurbishment/remodelling costs. A revised offer of £145,000 was made which could not be recommended and the sale fell through.

Ongoing Costs:
Business Rates:-

22 Portland St £3,300 RV, annual liability circa £1,815 pa
24 Portland St – £11,250 RV – tenanted property, occupier bears costs. 26-28 Portland St - £16,500 RV, annual liability circa £9,075 pa
30 Portland St – £11,250 RV - tenanted, occupier bears costs.

The total County Council business rates liability being circa £10,890 pa

State of Repair/Disrepair:
The properties are in a poor to fair state of repair only. A condition survey undertaken by Vinci Facilities dated 29 January 2026, reports that the vacant and unoccupied properties are generally in a poor condition, requiring extensive repairs.

The condition and mechanical surveys undertaken, indicate total expenditure to bring them back into good repair to be £398,125.54.

If the properties were brought back into a lettable condition and were fully let, assuming that their current rateable values reflect their market rents, the aggregate rental value that could be achieved would be circa
£42,300 per annum. Adopting a 11% yield would suggest a capital value of circa £385,000. As the cost of the works exceeds this value, this would not be a viable option.

Restrictive Covenants
The sale would include a restriction against the use of the site for Housing in Multiple Occupation (HMO) and that this be protected by way of a deed of covenant procedure to bind any future purchasers.

Legal Issues:
The County Council holds the freehold interest to this portfolio of properties, held under registered title LL64476.

The County Council properties 22 and 26-28 are currently unoccupied and the Council has vacant possession.

24 Portland Street is currently leased to the occupying tenant Wei Yuan Yin. The lease is dated 29 September 2014 for a 10-year term expired 28 September 2024 and the tenant has remained in occupation, holding over and continuing to pay the rent of £12,000 per annum. Due to the impending sale, in 2023/24 the strategic decision taken by the Council was to not serve notice on the current tenant.

30 Portland Street is currently let on a short-term lease to City of Lincoln Council until the CoLC re-locate to other premises – expected to be the of March 2026. Current rent is £6,000 p.a.

Permitted Use:
We understand that the properties have consent for uses falling within Class E (Commercial, Business and Services Use) of the Town and Country Planning (Use Classes) Order 1987 (as amended).
Class E now encompasses a number of uses formerly known as A1 (Shops), A2 (Professional and Financial Services), A3 (Restaurant & Cafes), B1 (Business) and D1 (Clinics, Health Centre, Creche & Day Nurseries).

Method of Disposal:
The property was successfully marketed and sold subject to contract in summer 2024 by Eddisons Surveyors by means of Informal Tender. It is proposed that Eddisons are re-instructed to market the property for sale by the same method.

Previously offers were sought in the region of £300,000 and wide interest and offers were received from a range of potential purchasers for uses including retail and residential conversion.

Eddisons will be instructed to provide their thoughts on the current market value, against which any bids for the site can be assessed.

Social Value:
The County Council agreed a sale to Investors in Lincoln in summer 2024 persuaded by the prospect of social value being derived from future occupation and use of the premises by communities and groups to be identified by Investors in Lincoln. However, whilst Investors in Lincoln stated added social value of £200,000 would be derived, it was unclear how this social value had been calculated as no Social Value report had been commissioned.

There is no specific social value requirement, though the council would like to see the properties brought back into repair and beneficial use for the amenity of local residents. If any revised bids incorporate a social value element then the Corporate Property team will assess this value added against the market value of the site.

Local Government Reorganisation:
Consideration has been given to the potential LGR implications, and the professional view of Corporate Property is that this disposal will not have any impact on the LGR proposals as the building is surplus to requirements.

Local Councillor Engagement:
Comments and observations regarding the proposal to dispose of this property on the open market were sought from local member Cllr N Chapman. No feedback was received.
Cllr Gibson and Cllr Kelly have also been approved and feedback to proceed has been received by Cllr Kelly.

Decision

To dispose of 22-30 Portland Street by informal tender

Alternative options considered

. Do nothing - this option is not recommended. There is no operational requirement for the property. The property was originally purchased in 2008 to provide a potential option for a re-location of the Crown Court building located within Lincoln Castle. No such re-location has materialised. Currently, the vacant units are unlettable due to the state of disrepair

2. Undertake repairs and refit in order to lease all properties - this option will require expenditure in the sum of £398,125.54 identified in the recent Condition Survey. This sum exceeds the Market Value of the property. The potential future rental income stream is therefore too low for there to be a financial return.