Decision details

The Council’s tenant Surrey County Council of 9-13 Westfield Road has requested that they be granted a licence to allow the sub-letting and change of use of the property.

The proposed sublessee is Belcanto Community Interest Company. A rent deposit has been agreed between the parties following an analysis of the company’s last three years’ accounts which were found to be unsatisfactory. We consider a rent deposit to be a satisfactory solution for the purpose of the sublease as Privity of Contract remains with the original tenant.

The proposed sub-lease is for a 10 year term with mutual annual rolling breaks on 6 months notice, at the passing rent of £54,000 p.a. A rent deposit of 4 months rent has been agreed between the tenant and sub-tenant.

The proposed change of use is from ‘technical training and occupational therapy and work centre’ to ‘creative industries hub and community use’. The lease dated 1st March 1979 stipulates ‘or any other purpose as may be approved by the Council (such approval not to be unreasonably withheld)’. On this basis officers have confirmed in writing that the proposed change is acceptable, however the parties have been encouraged to make their own enquiries with Planning.

By way of context, there were some prior negotiations with Surrey County Council in respect of them surrendering their leasehold interest. These discussions took place as they no longer had a service requirement for the site. Whilst surrender terms were agreed between the parties, unfortunately these discussions were abandoned as Surrey County Council were unable to deliver vacant possession.
This proposed sub-letting to Belcanto is an alternative solution put forward by Surrey County Council.

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

Scheme of Delegation to Officers October 2024
Assistant Director – Assets and Property
Para. 3.8.5
In relation to premises leased or licensed to others:
e) to approve proposals for assignment, sub-letting or surrender of leases and for change of use;
In consultation with Portfolio Holder
JSD Finance where there are financial implications.
Portfolio Holder (Housing) for HRA non-commercial leases. Relevant Assistant Director/JSD