Decision - Community Facilities - Revised Long Lease

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Decision details

Community Facilities - Revised Long Lease

Decision Maker: Central Services Cabinet Member Meeting

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes


1.     That the council acquires a long leasehold interest of 999 years for the Community Facilities to be built as part of the development of blocks E and F at the New England Quarter.


2.     That the council grants an underlease to the Ethical Property Company plc on terms to be agreed by officers under general delegations.

Reasons for the decision:

1.     A 999 year lease is a more valuable asset to the council, a virtual freehold, and the depreciation of its value is de minimus. By securing a much longer leasehold interest in the site the council is acting consistently by retaining a maximum interest in its property holdings.


2.     Such an interest gives the council greater control over the future use of the Community Facility for the length of its interest, allowing the council to secure the use of the building as a Community Facility or indeed apply to the freeholder for a change of use after 30 years.


3.     In addition, by virtue of the lease the council will have a degree of control over the freeholder’s use of the site including any future redevelopment.

Alternative options considered:

1.     A 160 year lease is a depreciating asset and its value will decrease over its lifetime.  It will not offer the council the same degree of control in the long-term.

Report author: Jessica Hamilton

Publication date: 23/07/2008

Date of decision: 21/07/2008

Decided at meeting: 21/07/2008 - Central Services Cabinet Member Meeting

Effective from: 29/07/2008

Accompanying Documents:


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