Commercial council properties

Offers are invited on a subject to contract and Council approvals basis. We ask that you submit only one offer that represents your best offer, without reference to other bids. Offers must be received no later than the closing date.

The asking rents quoted are minimum rents based on the open market rental value that the Council will consider.

We will consider a number of factors in the decision-making process to include the analysis of your offer and social value provided by the organisation.

The Council is under no obligation to accept the highest offer. If an offer is accepted, the premises will only be taken off the market on a payment of a non-returnable Landlord’s surveyors’ costs and Landlord’s legal cost. The remainder of costs of minimum 3 months’ rent deposit and 3 months’ rent to be collected on completion.

In order for us to consider your offer, you will need to complete the offer form and ensure you have the supporting documents for yourself and any other joint applicant attached.

The following mandatory documents to be provided by the applicant:

• two recent letters showing proof of address for any nominated person proposed as tenant in the lease, e.g.: a bank/credit card statement, utilities or council tax bill
• bank statements for the last 3 months showing the funds to cover the first 3 months advanced rental payment and the funds for a 3 months’ rent deposit, a total of six months’ rent
• photograph of individual(s)' passport (certified copy may be required on request)
• current credit check report supplied by one of the following companies:
• bidding form, which is available to download on the advertised property’s webpage
• any other additional documents that the Landlord may require at any stage of the transaction

If you are taking a lease in the name of a limited company, we require the documents below, as well as we require all of the above for the director(s) who will stand as a guarantor in addition to:

• Companies House number
• the company's last three years audited accounts
• credit report score rating for the company

All mandatory and optional documents must be submitted at the time of your application.

We will only consider applications from people that viewed the advertised property. We get back to applicants soon after the closing date. Depending on the number of applications it may take number of weeks. However, you will be notified accordingly.

It is recommended to all applicants that make an offer to the Council to use a solicitor and a surveyor as part of the lease negotiations.

For the majority of the properties, the Council offers a commercial lease on the following heads of terms. These heads of terms are not intended to create any legally binding obligations. They are subject to contract and completion of formally executed legal documentation.

Term: Term of the Lease may vary from 12 months to a maximum of 7 years, but we may consider a shorter minimum term under certain circumstances.

Review: Rent will be reviewed periodically at the end of each first, third and/or fifth year of the term and the rent review will be upwards only

Repairs: The tenant will be responsible for all repairs, decorations and maintenance of the property. The extent of the repairing obligations of the tenant will depend on whether grant of lease is in respect of the whole of the building or part only of the building of which the property forms part and the lease will state what the tenant is responsible for.

Service Charge: The tenant shall pay a fair proportion of the total cost incurred by the landlord in the repair and maintenance of the building of which the property forms part and the communal facilities where appropriate.

Alienation: Assignment of the lease is not permitted unless it is agreed by the Landlord. Subletting of the property is prohibited.

Insurance: The Council will insure the building against damage by various risks with the premium recoverable from the tenant. Tenants should have their own additional insurances like public liability

insurance, protecting against injury claims from visitors to the property, and contents insurance, to cover the tenant’s personal property within the leased space and are encouraged to consult with a business insurance broker.

Business Rates: The tenant to pay NNDR (National Non-Domestic Rates), also known as business rates, in respect of the property.

Utilities: The tenant will be responsible for all costs in connection with the supply or removal of Utilities like electricity, gas, water, sewage, air-conditioning, heating, energy, telecommunications, data and all other services to or from the Property. The Tenant must comply with all laws and with any recommendations of the relevant suppliers relating to the supply and removal of Utilities to or from the Property.

Fees: The tenant will be responsible for the surveyors’ costs and the Landlord’s legal cost incurred in dealing with the lease.

Once the property is confirmed as being offered to you and the heads of terms of the lease are agreed, you must pay the Surveyor’s cost and the legal cost to the Council. The said costs paid to the Council are non-refundable and are payable to the Council whether or not the matter proceeds to completion.

Rent Deposit: On completion of the lease the applicant must pay a Rent Deposit equivalent to minimum 3 months' rent, which will be held by the landlord throughout the term of the lease and any statutory continuation. The landlord shall be entitled to withdraw such proportion of the deposit as may be reasonably necessary to make good any default like failure by the tenant to pay the whole or any part of the Rents, outgoings and any other sums due to the landlord or non-compliance with any tenant covenants and conditions contained or referred to in the lease.

Guarantor: Where the applicant is a Company, the Council as the Landlord may ask for a personal guarantee from the Director of the Company.

Rent in Advance: On completion of the lease the tenant must pay the landlord 3 months' rent in advance.

Security of Tenure: The lease will not have the security of tenure by virtue of the Landlord and tenant Act 1954.

All requests for landlord’s consents will incur surveyor’s and legal fees which are non-refundable.

Alterations 

Any internal or external alterations to the building will require the Council’s consent as the landlord, full plans will be required when submitting a request for alterations, to enable the Council to carefully consider.

Assignment

The tenant must not assign the lease without the written consent of the Landlord. The Council may provide consent subject to some conditions like the Council may require higher rent deposit or deed of guarantee where the tenant has a poor credit rating.

Sub-letting

Subletting is prohibited.

Before completing the lease, the tenant must undertake a photographic schedule of condition, which confirms the condition of the property at the time of grant of lease. Prior to a property being vacated at the end of the term of the lease, a schedule of dilapidations will need to be agreed between the Council as the landlord and the tenant. The tenant will need to put the property back in the condition that was agreed in the lease and evidenced in the schedule of condition.

At the time of vacating the property the final utility meter readings will be taken, which will need to be sent to the relevant utility companies by the tenant together with completing the relevant moving out form. The tenant must clear all outstanding sums before the deposit is returned to the tenant by the landlord.

At the time of vacating the property the tenant will notify the Business Rates Department of the Council, that the property has been vacated by the current tenant.

Once the property has been vacated, all sets of keys will need to be handed over to the Council as the landlord.

Any other services that need to be terminated will be the responsibility of the outgoing tenant.