Current Position

The Executive Committee recently undertook negotiations with the current tenant to discuss the future of the hall. You will be aware that the previous tenancy arrangement was based on a Gentleman's agreement and, despite this being a verbal agreement, the tenant had kept his commitment and upgraded and maintained the hall in an impeccable condition.

Consultation Process

The Management Committee opened up a consultation and requested members to complete a survey to express their opinion in terms of looking at the best option in terms of the previous arrangement.  The survey results are as follows:

• Option A: 5-Year Lease with current tenant and invest the funds into community projects or towards the purchase of another building for our members use
• Option B: Lease to a Community Member
• Option C: None of the above

100% responses received during the consultation were in favour of Option  A and no responses were received in favour of Option B and C.

Lease Agreement and Income Generation

Background and Challenges

Recently, the premises had been facing several challenges due to the absence of a formal lease agreement. The tenant encountered difficulties, particularly with the reinstatement of electricity to the site, as the supply had been disconnected under the previous management. Alongside these issues, there were genuine concerns raised about the ongoing maintenance and overall safety and security of the property.

The revenue generated from membership fees is insufficient to cover the ongoing costs associated with the maintenance and management of the premises. The current economic climate, notably the cost of living crisis, makes increasing membership fees an unfavourable option, as it would place additional financial strain on our members.

As a result of this funding shortfall, there are periods throughout the year when the facility is under-utilised, and it often remains vacant for several weeks at a time. This lack of consistent occupancy further increases the challenges in securing the necessary funds to ensure the long-term sustainability of the facility.

The ongoing difficulty in meeting financial obligations underscores the significant issues faced in maintaining the premises. Essential expenses, such as bills, building insurance payments and routine maintenance, must be met to preserve this valuable community asset for current and future users.

Trustees' Decision and Consultation Outcome

The current trustees, faced with a series of complications, carefully considered their options and ultimately reached a unanimous decision to move forward with Option A. This course of action was directly supported by the results of the community consultation, ensuring that the decision aligned with the views and interests of stakeholders.

Lease Agreement and Legal Diligence

As a result of this decision, a formal lease has been signed with the existing tenant. The process was conducted with thorough legal diligence, overseen by the organisation’s appointed solicitor. This step has served to officially establish the tenancy arrangement, thereby addressing and resolving any outstanding concerns related to the property.

Income Generation and Community Benefit

The establishment of this lease ensures a steady stream of income from the premises. This revenue will be reinvested into community projects and will also support the future acquisition of another suitable property for use by members. The trustees are committed to maintaining income generation, with all investments directed towards the continued benefit and advancement of the community.

Option A: Securing Long-Term Stability and Investment

These are the current arrangements that have been negotiated in the lease arrangement.   

• A 5-year lease at a rentable income of £4,500 per month. This option provides guaranteed income for our community that can be reinvested into community projects or even towards the purchase of another community venue for our community to use.
• The tenant has committed to continue with the refurbishment of the premises at their own expense, including upgrading the toilets, inserting brand new carpets and exterior cladding, etc., to make the hall even more presentable for weddings and other occasions amongst other refurbishment.
• Three months rent payable in advance in 2 monthly instalments.  Any interest from this will be donated to charitable causes.
• Guaranteeing our community a minimum of at least ten (10) pre-arranged days use every year for our niaz, religious and cultural events, as well as extra days to hold our ladies majlis during the holy month of Muharram, at no cost to the community for venue hire.
• This arrangement also includes 30% discounted venue hire rates for CMA members only
• Continued investment to ensure the premises is maintained impeccably.
• Tenant has agreed to a review of the rent in 18 months' time.
• Any building work undertaken will be approved and inspected by Management Committee to ensure planning obligations are met and is legally compliant and is of acceptable quality.

Thank you for your continued support and for helping us make an informed decision for our community’s future.  We hope you will work with us to ensure that we can utilise this investment to prosper as a community and invest back in a purpose built premises that can benefit our current and future generations and we can continue to organise events, sports facilities, transport, events etc. to strengthen our community cohesion and vibrant community spirit. 

Any members who wish to join us on this journey as we progress the community forward are welcome to come on board.

CMA Management Committee and Board of Trustees