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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 03/10/2006
SURRENDER AND RENEWAL OF LEASE OF
PLOT 2, FARNHAM TRADING ESTATE, FARNHAM & Map



Summary & Purpose
This report seeks approval for the surrender of the existing lease of Plot 2, Farnham Trading Estate, shown outlined on the plan annexed, and the grant of a further lease of 125 years on modern terms as set out in the (Exempt) Annexe.

APPENDIX M
Waverley Borough Council

EXECUTIVE – 3RD OCTOBER 2006

Title:
SURRENDER AND RENEWAL OF LEASE OF
PLOT 2, FARNHAM TRADING ESTATE, FARNHAM
[Ward Affected: Farnham Weybourne and Badshot Lea]

Note pursuant to Section 100B(5) of the Local Government Act 1972

An annexe to this report contains exempt information by virtue of which the public is likely to be excluded during the item to which the report relates, as specified in Paragraph 3 of the revised Part I of Schedule 12A to the Local Government Act 1972, namely:-

Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Summary and purpose:

This report seeks approval for the surrender of the existing lease of Plot 2, Farnham Trading Estate, shown outlined on the plan annexed, and the grant of a further lease of 125 years on modern terms as set out in the (Exempt) Annexe.

Environmental implications:

There are no environmental implications arising from this report.

Social / community implications:

There are no social/community implications arising from this report.

E-Government implications:

There are no e-government implications.

Resource and legal implications:

The Council will receive an improved rent for the premises, as set out in the (Exempt) Annexe. The applicants will meet the Council’s legal costs.
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Introduction

1. Plot 2, Farnham Trading Estate, is let on a lease expiring in 2056 at a rent set out in the (Exempt) Annexe. It is, at present, developed with two medium-sized units of an older construction style.


Proposal

2. Kindale Limited is a property investment company that specialises in taking on and actively managing properties requiring refurbishment. It is the lessee of Plots 9 and 9a Farnham Trading Estate, which it has renovated, divided into five units, and is in the process of subletting or assigning. It is interested in acquiring a lease of Plot 2, but considers that the remaining length of the existing lease of 50 years is insufficient for its purposes. It has therefore requested that Waverley, as freeholder of Farnham Trading Estate, accept a surrender and renewal of the lease of this plot should it obtain an assignment of the lease in the near future. Terms for the surrender and renewal are also set out in the (Exempt) Annexe.

3. When investing significant sums into property either in renewal or renovation, it is expected that lease lengths are significantly longer than 50 years. The industry norm for new leases is 125 years. The proposed length of lease is therefore considered acceptable. The proposed rent is subject to regular review and is considered to maximise Waverley’s revenue from the site.

Recommendation

It is recommended that, should Kindale Limited become the lessee of the above premises, a surrender of the existing lease and a grant of a lease of 125 years be offered, on terms as set out in the (Exempt) Annexe, other terms and conditions to be negotiated by the Property and Development Manager.

Background Papers (DoPD)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.


CONTACT OFFICER:

Name: Ailsa Rhodes Telephone: 01483 523459

E-mail: arhodes@waverley.gov.uk

Comms/exec/2006-07/127


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