If a lease is granted for longer than say five years, it is usually the case that the parties involved will make provisions in the lease for varying the annual rent at intervals during the term.
Rent Review Clauses are traditionally incorporated into commercial property leases in order to allow landlords an ability to increase rent. Rent Reviews can be technical and will involve a detailed understanding of the lease. The process can involve floor area measurement, viewpoints on positive and negative property attributes which may impact value, compilation and analyses of market rentals and an appreciation of local and national economic drivers and trends. Depending on market activity within the cycle, rent reviews may have capacity to increase asset values as well as increase rental income costs.
Where it has not been possible to agree rent at review between parties the lease usually makes provision for Dispute Resolution and determination by a third party acting as Independent Expert or Arbitrator to determine the level of rent due under the terms of the lease.
As Chartered Surveyor and Expert we are experienced in writing Expert Reports and Replies which are submitted to the third party appointed Arbitrator or Independent Expert in order to achieve a successful outcome. Whichever side, landlord or tenant, it is important the Expert undertaking the rent review is contesting professionally with the knowledge of the relevant market and be able to achieve the client’s desired results.
Guy Nicholson as a Chartered Surveyor and Member of The Chartered Institute of Arbitrators has the Expert insight and ability to advise during the full rent review process for clients.
Lease Renewals, Regearing and Surrenders
If a commercial property lease has a Break Option or is due to expire then an opportunity is given to the landlord or tenant to revisit the previously agreed lease terms and rent. Many commercial property leases are typically protected under Part II of the Landlord and Tenant Act, 1954 and will therefore have a statutory right to be granted a new lease which the landlord can only oppose on certain grounds.
Guy Nicholson Chartered Surveyors is able to give professional advice on all stages of lease expiry and its options. Moreover, can advise on Lease Surrenders and Lease regears to ensure the occupancy meets the business’ needs whether it be short, medium or long term. We can advise on Lease Terms, Rent Review Clauses, The Basis of Valuation for Rent Reviews when drafting the new Lease and work closely alongside Solicitors and Advisors in different Lease situations.
Subject to lease a tenant may be able to Assign, grant Sub-Lease of the whole or a part of the premises.
Guy Nicholson Chartered Surveyors can advise on strategy and Lease Terms concerning these situations and options.