A minimum 4 years unexpired (mean unexpired term for multi-let properties) is preferable: however this is flexible if it helps achieve the strategy objectives.
- For multi-let properties, a mix of lease expiry dates are preferred, thereby limiting void risk (unless the property is purchased with a view to re-development)
- Properties would preferably be let to sound tenants on leases with a preference for ‘Full Repairing and Insuring’ leases for single occupiers and through internal repair obligations and a service charge for multi-let properties.
- There may be overriding community benefit and/or economic reasons to move away from these criteria and these will be considered on a case-by-case basis.
For all of the above:
The final decision over the definition of “good,” “secure,” “strong,” “long,” “careful,” “controlled,” “acceptable,” “balanced” and “risk-averse” will be agreed between the property acquisition advisers (including legal due diligence) and the Officers delegated with the responsibility to conclude the acquisition of the properties.
This discretion will be based on both the risk to the capital value of the asset and the fit with the strategy objectives.
