Purpose

The current Tenants have occupied Fairfield Children’s Centre since 2008 by virtue of a lease.

The previous lease expired 4 April 2018.  Following the expiry of the lease, the Council has continued to collect service charge income; however, rent invoices have not been raised since the lease expired.

It is proposed to grant a new 5-year lease at an annual rental of £0.007m (Seven Thousand Pounds).

The Lease will be subject to a rent review midway through the term.

The Lease is contracted out of the security provisions of the Landlord and Tenant Act 1954.

Decision

(i)                  The Council gave approval to grant a new lease to the current Tenant.

(ii)               The new lease was approved for a term of 5 years.

(iii)             An annual rental of £0.007m per annum was given approval.

(iv)             That the rent to be reviewed mid-term to reflect current market value was approved.

Reasons for the decision

To regularise the occupation of the property by virtue of the grant of a new lease. 

Alternative options considered

Two alternative options were considered:

(i)      Do nothing.

(ii)    Oppose new lease.

Neither of these options are considered appropriate and would lead to reduced income to the Council.