Purpose

The Bank is currently holding
over under a lease which expired in August 2025.  This renewal has been the subject of prolonged
negotiations between the Council’s agents, the agents for the
Town Trust as joint landlord, and JLL, the agents for the
Bank. 
 
The Bank has not served a
Notice under Section 26 of the Landlord and Tenant Act 1954 which
is the tenant’s notice for a new lease. 
 
The service of the Section 25
Notice is to pre-empt a Section 26 Notice being served.  As the Council with the Town Trust, and the Bank
are not in agreement on the currently proposed terms, the Bank
requesting a shorter term and a lower rent, the Section 25 Notice
starts a court related negotiation process at the landlords’
preferred level.
 
The Council and the Town Trust
are very mindful that the Bank is important to the Town and wish to
preserve this facility. 
 
Serving the Notice locks the
Bank into a negotiation and a potentially longer lease at a higher
rent, than might otherwise be achieved, though the Court will
assess a rent by reference to the market rent.
 

Content

The decision is for the Deputy
Chief Executive of the Council to approve the service of the
Section 25 Notice on the terms currently proposed.

Reasons for the decision

This decision is in conjunction
between the Council and the Town Trust which is a joint
landlord.  The Town Trust has approved
the service of the Notice and the currently proposed
terms.
 
Section 123 of the Local
Government Act has been taken into account and it is believed the
currently proposed terms represent best consideration. 
 

Alternative options considered

Serve the Section 25
Notice to pre-emp the possibility of a Section 26 Notice being
received.  This leads to a process which
settles the terms and generates a new lease.  This could involve court proceedings with the
related costs of that; or

 

2.   
Do nothing and wait for the Bank.  This is not felt appropriate as it does leaves
matters in abeyance, not only over the rent and the term but
generally as there will be no written lease and the Bank will
remain holding over.  However, this
would be at the current rental but could lead to the Bank vacating
the premises in a short time, possibly in as little as six
months.