Purpose

The Flat at 47a has been vacant for some time
since the previous St Leger tenant gave notice. PFG have requested
to take on the unit as an addition to their current lease agreement
which currently consists of one mixed use premises at 45 and the
shop unit at 47 Montrose Avenue.

They are well established in the area and have developed strong
working relationships with many health support providers offering
mental and physical health support. By taking on the flat at
47a
it is felt this will improve and increase the level of support the
team are able to offer to the community offering increased social
and economic benefits to the area.

As the dwelling is currently classed as social housing with the
Housing Revenue Account and sits outside of the commercial lease of
no 47, Secretary of State approval is required to change the
use of this property from social housing and into a classification
of a commercial property. Consultation has been carried out with
neighbours living in the vicinity of 47a Montrose and the results
found no objections to the residential flat becoming a commercial
property. Results from the consultation are included in the
consultation section.

Content

To approve the application to the Secretary of
State for a change of use from social housing to a commercial use
for 47a Montrose Avenue, which if granted will allow the PFG to
incorporate the
2 bed first floor property at 47a Montrose Avenue into their
existing lease agreement portfolio. PFG are the current
leaseholders at 45,45a & 47 Montrose Avenue.

PFG originally became the leaseholder of 45 Montrose Avenue in 2012
with a rental amount of £500 per annum. In November 2019 they
were supported in becoming leaseholders of our empty commercial
unit at 47 Montrose Avenue, incorporating this with that of mixed-
use premises at 45 Montrose Avenue for a combined agreement with a
new rental figure agreed at £1,000 per annum.

If the application for change of use for 47a Montrose Avenue is
approved, then that property will be included within the existing
lease agreement. They intend to use the additional unit to
help
increase the support they can offer to the community. They work
very closely with St Leger Homes & key partners such as the
local NHS Housing to provide ongoing support to service
users.

Previously the flat at 47a was let as social housing until June
2023 and has been vacant since, the rent when tenanted was
£74.70 per week resulting in income of £3,884.40 per
annum. It is important to note that changing the flat to a
commercial use will also require planning permission to be applied
for and secured before the flat can be used for commercial
purposes.

Alternative options considered

Option 1 – Approve the decision to apply
to the Secretary of State for a change of use for the property
(recommended option)

Option 2 – Reject proposal and relet via Homechoice as a
social housing dwelling.