I need some advise, the building in which we have been in Longfield Hall (LFH) is in the process of obtaining a Capital Asset Transfer from Lambeth. The Nest Pre-School has been a major stakeholder of LFH since 1992, hiring the caretakers flat as sole occupiers and paying our rent to `The Friends of Longfield Hall now newly re constituted as The Longfield Hall Trust 2013.
The Nest Pre-School has now been asked to sign a Venue Hire Agreement/ licence that stipulates the same terms ie Rental /hour, assess, etc on basically the same terms as a 1 hour/wk yoga class. The purpose being LFH Trust wants to rent out our space immediately the day ends and also in the Summer Holidays, in order to show Lambeth that it is putting the Hall on a Financially sustainable footing.
However, they have acknowledged in their bid to Lambeth that we are non-profit making community pre-school, which ticks the boxes for the asset transfer. Nevertheless we are now facing significant rent rises, if I increase the hours for the next tax year 2014-5, 9-3.15pm Mon-Fri of £3319.50. Our rent was increased last year by £1000 from £5000 to £6000. As you can gather this level of continual rent increase is unsustainable. (The NEF funding alone for 3 year olds has remained at £4.08/hr for 5 years now.)
In the Business Premises one of the questions asks
Are the business premises
And If you are a playgroup that does not have an agreement with your landlord then you should look into this further.
In 2010 Longfield Hall got a 15 year lease with Lambeth current Rent is £14k/yr,
The Friends of LFH’ income comes entirely from hiring out the hall. Users are mostly not-for-profit organisations. The Friends of Longfield Hall has started to push up its hire charges for long-term users. The board is also considering starting to charge the halls’ heaviest users directly for the gas and other services they consume. Currently, hire charges are all-inclusive
I am not sure if by accident we are in-fact tenants not licencees as LFH would like to think, we have put considerable financial investment into the building around 24K over 20 years, we have an excellent local reputation, and a long waiting list.
Does rented premises equate hire/licencee, or does a Pre-School by it’s the nature have to be offered a tenancy or lease agreement. We have always thought that we had a tenacy from the start as we have been sole occupiers as they admit
During term times, a self-contained part of the hall is used by a not-for-profit nursery, The Nest.
Meeting for the ~Longfield Hall Trustees 31.3.2014
Will Ollard the Chair of Longfield Hall Trust “qualified that under the current arrangement the Nest do in fact pay pro-rata for the space over the summer break in line with their normal opening hours. It therefore can sublet the space for children’s parties etc.”
Under the new contract this will not be the case, as it is not proposed that the Nest pay for the summer holiday period. Greater reason to ensure space is utilised.
As you can see they want to change the contract, which admits we paid rent and had sole use of the self – contained part of the Hall over a yearly period.
Our aim is not to jeopardize the asset transfer but secure our tenure, with proper rent reviews.
In the venue hire agreement LFH trust offers us our current space l Section 1 Booking Details: Short term contract to Sept with the "intention to" then offer an annual contract. One of my parents suggested this is replaced with "commitment to".
If you are unable to advise me of what The Nest Pre-School, should do next could you suggest what course of action we should take, or what legal advise Lambeth might offer us.
The Nest Pre-School
London SE5 9QY
M XXXXXXXXXX [email protected]