Issue details

We have been asked to approve a 5 year sub lease by the solicitors representing the ground leaseholder of Unit 12 Pioneer Court, Hagen Developments Limited
The proposal is for them to grant a lease to TMD Friction UK Limited (Company House reg no: 4330235.The lease will be FRI Terms for a rent of £45,000pa though the first 6 months of the term will be rent free. There is a break clause which can be activated by the tenant only giving the landlord not less than six months written notice of intention to terminate agreement. Bank references are not required due to the Council only receiving a nominal rent of one peppercorn.
The use is office services use class E (formerly use class B1 of the Town and Country (Use classes) Planning Order 1987). The company manufactures parts and accessories for motor vehicles.
Trade references not required either.
The Companies House check has not revealed anything to be concerned about.
The alienation clause in the lease between The Council and City & Northern (Now Hagen Developments) does not refer to any under-lessee being a good a proper person or company, just that the Council’s consent cannot be unreasonably withheld or delayed.

In light of the checks Hagen Developments will have commissioned, to ensure their direct under tenant is of substantial covenant and standing, we have no grounds for withholding our consent. TMD Friction UK Limited will not be paying rent to the Council. They will be paying rent to Hagen Developments Limited.
The Council’s legal and surveyors fees of £500 are being paid by Hagen Developments Ltd for processing this approval.