Issue details

To approve the surrender of an existing right to use 26 parking spaces at 255 High Street (Connaught House) for contract parking and the simultaneous enter into a long lease from Connaught House Holdings Ltd to Guildford Borough Council for the ground floor car park and sublease back to Connaught House Holdings Ltd.

The long lease to Guildford Borough Council will be subject to the following main terms:

1. To be leased to the Council for a term of 999 years for use as a car park for parking private motor vehicles.

2. Rent of £1pa (if demanded)

3. Start date – Day of completion.

4. The Council may assign or sublet the whole of the premises with the consent of the landlord.

5. The Council will be responsible for undertaking internal repairs to the premises.

6. The Council will be responsible for any rates and other outgoings attributable to the use of the premises.

7. The landlord will pay the Council’s professional fees.

8. The Council will be responsible for keeping the Demised Premises in good and substantial repair and condition. The Demised Premises are the internal parts of the ground floor car park and below is a list of what is included and excluded from the definition of Demised Premises.

The Council will be responsible for repairing any conducting media, apparatus, fixture and fittings and machinery within and exclusively serving the Demised Premises. The Council would be responsible for ducting within and exclusively serving the Demised Premises. The Landlord will be repairing the parts of the building not within the Demised Premise’s and charge back the cost of such repairs through the service charge.

Damage by insured and uninsured risk as well as damage arising due to an inherent defect (i.e. a defect in design, material, workmanship or supervision of contractors or site preparation works) is excluded from the Council’s repairing obligation.


The underlease back to Connaught House Holdings Ltd will be subject to the following main terms:

1. A term of 99 years for parking private motor vehicles belonging to its tenants of the office and retail space at 255 High Street.

2. Rent of £100,000pa to be payable, subject to 5 yearly reviews in line with RPI increases (with a cap of 4% and a collar of 2%).

3. Start date upon completion of the building being extended and refurbished, subject to agreement.

4. The undertenant may assign the whole of the underlease upon the sale of its interest in the rest of the building with the consent of the Council.

5. The undertenant is responsible for internal repairs.

6. The undertenant will be responsible for paying rates and other outgoings. Outgoings would include business rates and cost of utilities used and it would include lighting used at the Demised Premises.

7. The underlease will contain tenant only break options at 20 year internals, operable of six months prior written notice.

Outgoings are defined as “all non-domestic rates, water rates, water charges and all existing and future rates, taxes, charges, assessments, impositions and outgoings (whether parliamentary, municipal, parochial or otherwise) which are now or may at any time during the Term be payable, charged or assessed on the Demised Premises or occupier of property, but “taxes” in this context does not include value added tax, nor any taxes imposed on the Landlord in respect of the yearly rent reserved by this Lease or in respect of a disposal of the reversionary interest in the Demised Premises”.

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