Decision details

Variation to Lease dated 15/12/72 to LeedsHeath Ltd.

Decision Maker: Joint Assistant Director: Assets and Property

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:


To approve the variation of the lease dated 15/12/72 of 4 Westfield Road let to LeedsHeath Ltd in line with the following terms and conditions:

• To replace the current permitted use with “Any use falling within B2, B8, E(g)(iii) plus ancillary office use under E(g)(i) of the Town & Country Planning (Use Classes) Order 1987 as amended”.
• To remove the current basis of review so that the open market rent should be based on 12% of the open market rental value (not referenced to sublease income). Tenants improvements carried out prior to the date of the next rent review will be included/not disregarded. Otherwise, any consented improvements carried out after the date of the first rent review will be disregarded. The assumed term will be 10 years but if such a hypothetical term would result in a discount, then the assumed term shall be for such a period that is in keeping with typical lettings of such units as the property in the open market at the review date.
• Date of next rent review and frequency of rent review – the existing lease provides that the next rent review is due 26/5/34 (every 21 years). This next rent review date will be brought forward to 26/5/29 and thereafter every 5 years.

The financial advantages to the Council in amending the rent review provisions of the lease offset the advantage to the tenant of widening the user provision 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.


If you have any queries, then please contact Charles Wood who will be happy to provide further information.


Reasons for the decision:

In accordance with sound estate management practice

Alternative options considered:

The decision meets the statutory / policy requirements for the Council and there were no alternative options available

Source of Authority to take Decision:


Scheme of Delegation to Officers July 2024
Assistant Director – Assets and Property
Para. 3.8.3
To acquire and dispose of land and property in connection with the Council’s functions and to grant leases, variations, tenancies, rights, easements, licences, consents and wayleaves of, in, or over buildings or land in connection with the Council’s functions, in accordance with Council policies and within the approved General Fund capital programme.
In consultation with the Portfolio Holder and the Joint Service Director Finance


Publication date: 09/08/2024

Date of decision: 25/07/2024