Decision Maker: Joint Executive Head: Assets and Property
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
To serve a 2nd section 25 notice to grant of a
new lease of 86- 88 Woodbridge Road, Guildford on the terms set out
below.
The legal team have advised that following the original S.25 notice
having been served in Jan 2022 by the Council, the tenant’s
lawyer has challenged its validity. The original notice had stated
the name of the original tenant (Trillium) and had not been served
on the current tenant to whom Trillium had previously assigned the
lease, the Secretary of State for Levelling Up, Housing &
Communities.
Following Counsel’s opinion having been obtained, it has been
recommended the Council serve the 2nd S.25 notice on the current
tenant to protect its interest ‘without prejudice to the
validity of the original S.25 notice served’. Should it be
proven that the original notice is invalid, the original S.25
notice would then fall away and the replacement 2nd S.25 notice
would take effect to protect the Council’s interest. Should
the original notice be found to be valid however, then the 2nd S.25
notice will consequently be of no effect.
The current lease is protected under Part II of the Landlord and
Tenant Act 1954 (the Act) and the contractual term expired on 23rd
March 2021. 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.
The proposal is that a new lease be granted broadly on the same
terms as the current lease with the following terms and
conditions:
- 10 year lease term
- 5 year Tenant only break
- Initial quoting rent to be £541,343 pa
If you have any queries, then please contact Vince Sibley who will
be happy to provide further information.
To serve a 2nd S.25 Notice following challenge
of the original S.25 notice served in order to protect the
Council’s interest in progressing this lease renewal
following expiry of the contractual term.
The decision meets the statutory / policy
requirements for the Council and the alternative option of relying
on the original S.25 notice served would leave the Council at risk
in relation to negotiations on this lease renewal progressing if
the original S.25 was subsequently proven to be invalid.
Publication date: 30/09/2022
Date of decision: 23/09/2022
Effective from: 08/10/2022