Decision

Deed of Variation of Lease between GBC and Pavilion Housing Association (Vivid) Property address: 95-103 Longacre Ash.
1. New definition - amend the definition from “Registered Social Landlord” to “Registered Provider” in line with recent legislation amendments. We propose to accept this variation as it does not make any substantial difference to the Council.
2. Amendment of existing clauses and an addition of a new clause – Paragraph 19 and 23 of the Third Schedule of the lease shall have the parts which give protection to a mortgagee or chargee removed and replaced with a new clause 26.
The new clause 26 allows for the mortgagee or chargee, providing they give the Council 3 months notice (previously 4 months), to change the use, sell, assign or underlet the premises free from the provisions in the existing clauses 19 & 23. The existing provisions are to use the premises for the purpose of rented housing to meet local needs “affordable housing” or to assign or underlet the premises to a Registered Provider.
The current wording of clause 19 provides additional protection to the Council in that the mortgagee or chargee does not have an absolute right to change the use and the use still has to be approved by the Council. As the consent is not to be unreasonably withheld the scope of this protection is limited but it certainly goes further than the proposed new wording.

Reasons for the decision

We have been contacted by Trowers & Hamlins LLP solicitors to consider the deed of variation of our lease with Vivid Housing Limited for all those land and buildings situate at 95-103 (inc) Longacre, Ash.

Alternative options considered

None