Who This Policy Applies To

For the purpose of this policy the definitions which will be used are as follows:

• Voluntary Sector encompasses voluntary organisations and locally based community groups which may include companies, tenants, and incorporated bodies. They may have paid staff or be run by volunteer workers or have a mixture of both.
• Voluntary Sector organisations:
  • Are managed by voluntary management committees.
  • Are independent bodies which determine their own aims and objectives.
  • Are not party political.
  • Do not depend on statute for their existence or purpose.
  • Have as their purpose a common benefit of a social or economic nature, (and have frequently sought charitable recognition from the Inland Revenue).
  • Their function is not the generation of profit as an end in itself; surpluses made are reinvested in the running and development of the organisation.

Scope of the Policy

This policy covers the lease arrangements for all Council buildings and land to the voluntary sector, with the exception of any proposals to lease land for major building developments (this is covered by a separate policy - "The Allocation of Council Owned Land and/or Premises for Development by Community and Religious Organisations, October 1998").

Duration of the Lease

All leases will normally be for a maximum period of 5 years. Exceptions may be when other funders require a longer lease in order to fund capital works, or in the case of shared occupancy with the Council, when the maximum will be 3 years.

Rental Arrangements

All organisations must pay the full market rental for the property.

Rental Subsidy

In certain circumstances, if an organisation can demonstrate that it is unable to afford some or all of the rental the Council will consider making a grant to cover up to 100% of the rental. This will only apply if the voluntary organisation is providing a service which meets a Council priority and is supported by the relevant section of the Council. In the case of school premises the rent subsidy arrangements are not applicable.

New Leasing Arrangements

Annual rental under £10,000 - the lease and any rent subsidy will be dealt with by the Head of Corporate Property and the relevant Head(s) of Service under their delegated powers.

Annual rental over £10,000 - a detailed report will be submitted to the appropriate Cabinet Members.

A summary report will be presented to Members as part of the annual report on support to the Voluntary Sector.

Renewals of Existing Leases

These will be dealt with by the Head of Corporate Property and the relevant Head(s) of Service under their delegated powers.

A summary report will be presented to Members as part of the annual report on support to the Voluntary Sector.

Fees

The Council and the voluntary organisation will each be responsible for paying their own legal and surveyors fees.

Repairing Responsibility

Renewals

Renewals of existing model voluntary sector leases will be done on the basis of split responsibility for repairs (in broad terms, the Council is responsible for structural and external repairs, the voluntary organisation is responsible for internal repairs).

New Arrangements

When a voluntary organisation is planning to refurbish the building using external funding the building will be leased on a full repairing lease (the voluntary organisation will be responsible for all repairs, including external, structural and internal).

All other cases will be looked at on an individual basis.

Sub-Letting

Sub-letting will only be allowed with the Council's written consent and must be on the same terms as those set out in the lease between the Council and the voluntary organisation (the main tenant).

Opportunity to Purchase

If the premises are in isolated ownership and are not required by the Council for its own redevelopment purposes the voluntary organisation will have the option to purchase the property at full market value. No grant will be available from the Council towards this and the sale of the property will be subject to Council approval.

The Council will value the property in order to determine the market value. If they wish the voluntary organisation will be able to appoint an independent valuer to negotiate on its behalf.

Allocation of Council Property

Occasionally more than one voluntary organisation will express an interest in a Council property. Each organisation will be given the opportunity to submit a proposal outlining any refurbishment work and the services that they intend to provide. The Council will then select the most suitable project, bearing in mind its viability and its links to Council priorities.

Finding Premises

The Council cannot provide a property finding service. However, organisations which are looking for premises need to write to Corporate Property giving brief details of their organisation, the sort of premises they are looking for (including size) and any preferred location.

Their details will be added to a mailing list and they will be automatically advised of any premises which become available. The property will be allocated on the basis of the viability of the project, the benefits that it will bring and its links to Council priorities.

Timescales

The Council will try to adhere to the following timescales when dealing with requests for property:

Monitoring: Corporate Property will be responsible for monitoring progress until completion of the lease. A summary monitoring report will be produced each quarter showing all active cases.