Landlord Success Stories
Please click on a property address to reveal information about my involvement.
Arranged on basement, ground and upper floors, the entire property, which adjoins its store, is let to Debenhams.
For the Landlord, I am dealing with the 2008 rent review.
No.
45 is let to Marie Curie as a charity shop. No. 51
to Tyler Goodchild as an optician.
I act for the Landlord and deal with rent reviews and tenancy matters arising. When the owner of an adjoining building sought my Client's consent to allow an easement for the electricity supply, I advised on the terms and conditions of the deed with Eon.
A
9000 sqft building on basement, ground and upper
floors, the property was let to JJB Sports plc and
is one of the latter's shops in the CVA.
For the Landlord, I advised on the 2006 rent review and the CVA claim. The 2006 review was referred to an independent expert for determination, but abandoned when the CVA was approved. I dealt with the CVA claim and negotiated the fees payable to the expert as part of the CVA claim.
I
act for the Landlord. In 1998, I let the premises
to the tenant and have dealt with the subsequent
rent reviews at 5 yearly intervals. The 2008 review
is in hand at present and has been referred to an
independent expert.
For
the Landlord, I provide lease advice and handle
matters arising.
No. 30 - In 2001, I negotiated restructuring of the lease to Oxfam so that the flat above was surrendered to the landlord. In 2006, Oxfam decided not to renew its lease on expiry so I handled the dilapidations claim and arranged new letting of the shop to UK Pet Centres. The rent devalues to approximately £44.75 Zone A which is one of if not the highest rent in this part of the parade.
No. 32 - The entire property (shop and flat) was let to O & H Properties Ltd which in turn had sub-let the flat and shop separately. In 2007, I advised on the dilapidations claim, requiring the Lessee to carry out major repairs to the structure. Also, I negotiated renewal of the tenancy of the shop and which is now let on lease outside the Landlord and Tenant Act 1954.
I
am managing agent for the Landlord. For many
years, the property, a shop and flat, was let
to Forbuoys newsagents. In 2005, following
negotiations for renewal at around £15,000 pa,
Forbuoys did not renew. I arranged letting to
an established local hairdressing business for
15 years at £20,000 a year.
Acting
for the Landlord, 384 Green Street, Upton Park,
London E13 is let to Boots and I obtained
approximately 31% increase at rent review 24 June
2008.
In a corner position, at the junction with Harold Road, and close to Upton Park Station, the property is a ground floor shop with ancillary space on two floors above. It also has on-site parking for 1-2 vehicles in its own yard. The trading position is amongst the finest, with Peacocks, Iceland and Tesco Metro a few doors along in the same parade.
The review was referred to arbitration. In my submission, I opined Zone A £60. During the proceedings, evidence of the letting to Habib Bank in the same parade was examined in detail and I suggested 10% deduction which reduced the Zone A to £54. So, whilst I think the award at Zone A £50 a little low, because Zone A £60 had been achieved nearby, at the end of 2007, involving an unrepresented tenant; and local opinion suggested around £70 elsewhere, gathering the evidence into a form suitable for carrying much weight or meaning was not possible, so I was unable to comply with the arbitrator's directions in some respects. Upton Park is notoriously an area in which reliable and/or meaningful evidence is hard to come by.
The tenant's expert witness surveyor was of the opinion the rent should not increase and cited evidence of 2005 reviews at Zone A £38.75 in the same parade. I disagreed with that as evidence, because it involved large stores which, in my experienced, are normally valued overall, rather than in zones. Also, a contention that because Zone A £41 had been agreed a year before letting the premises to Habib Bank was discounted, because it is not unusual for a negotiated settlement to be less than the Zone A level after exposure to the market.
The investment remains slightly reversionary, because, assuming all other factors remaining constant, on expiry of the lease in 2013 a 5% allowance for the hypothetical term would not apply, so the rent would go up by another £2000 pa or so.
I am particular happy about a couple of points. There are 4 advertising panels on the return frontage for which at previous reviews the tenant had resisted paying. This time, I got £250 a year.
Also, I managed to convince the arbitrator that evidence of rent on a sale-and-leaseback, when the investment is offered for sale in the open market, must contain some element of realism, so should not be disregarded. Since HSBC had sold at auction a leaseback of its branch at 349 Green Street in March 2007, the Zone A rate was assessed at £45 Zone A.
My Client bought the investment in 1988 when it was offered for sale by auction on a sale-and leaseback, with 5 yearly rent reviews. Because of the difficulty over the years experienced by other landlords and their surveyors, not just me, in finding hard evidence because of a paucity of new lettings to show proper increase, the rent has never previously gone up by much. Although the revised rent is just over double what it was in 1988 and at each review there has been some increase, this is the first time since 1988 the rent has been assessed objectively and the increase approximately 30%
The
property comprises a 52,000 sqft store occupied by
New Look.
My Client, the superior Landlord, owns the freehold of the front section of the property, a ground lease for a term of 999 years of the back section and 99-year lease of the middle section. The middle section is built on a raft over the railway tracks and the rent for that section is a percentage of the entire property. My Client leases the whole property to Powis Street Estates which in turns sub-lets to New Look.
The 99-year lease has rent reviews every 21 years and the lease between my Client and Powis Street Estates also contains rent reviews at 21 year intervals.
For the 1995 rent review, when the store was let to Littlewoods, the review was referred to arbitration, the arbitrator was a senior partner of Jones Lang LaSalle. Littlewoods was represented by a partner of Healey & Baker (now Cushman & Wakefield). In the respective submissions, we considered the rents of stores throughout Greater London. The Award was at almost the same rent as I had originally proposed.
For the 99-year lease review, where my landlord-client is the tenant, other factors were involved reflects differences in the leases. To minimise the proposed increase in rent, I had to research the development history of the building including obtaining copy documents from the solicitors that had acted for the original landlord in 1974.
For
the Landlord, I deal with the rent reviews and
matters arising.
Both tenants, McDougall Rose, (an ICI company), and Tobys have been in occupation for years.
The tenancies were renewed in 2008. The property has long-term redevelopment potential.
In
Polegate, I am currently dealing with the 2009 rent
review at 10 High Street. My Landlord-client also
owns other shop properties nearby.
Acting
for the Landlord, in connection with a 2008 rent
review in a ground lease referred to arbitration. I
acted in a supporting role to a chartered surveyor
who specialises in car park rents. My role included
advice on the effect of a long-lease on the review,
interpretation of the user clause, and the
valuation of the buildings.
I also advised the landlord on the wording of a deed of variation.
The Landlord bought the property at auction, the tenant, T & S Stores, trades as Tesco Express. The investment was bought with the review outstanding and I was instructed to deal with the review. The tenant's surveyors were emphatic at no increase so I arranged referral to an independent expert. The determination resulted in an increase.
During negotiations, the tenant's surveyor was so hostile towards me that after one telephone conversation I was physically shaking. After that, I promised myself I would never again shop at Tesco.
For
the Freeholder, for whom I have acted since 1978, I
arranged sale of the freehold interest in 5 Neeld
Parade, Wembley by auction, in conjunction with
Barnett Ross, on 20 February 2008 - Lot 28
At the junction with High Road and adjoining William Hill, and approximately 100 yards from the southern approach walkway to the new Wembley Stadium and Wembley Stadium Station, the property is a ground floor shop with first floor rear storage, and self-contained 5KB flat on two floors above.
The shop has A3 use (restaurant/coffee bar).
Gross frontage 20'5"
Net frontage 14'9" widening to 17'2"
Shop depth 55'4"
Built depth 100'11"
Rear storage, approximately 180 sqft
The entire property is let for 20 years from 25 December 1989. The passing rent £14,000 was fixed in 1990 and no action was taken for the 2005 rent review. The lease expires in 2009.
The guide price was £350,000 and the property was sold for £595,000. In addition, the buyer paid my Client approximately £7000 for arrears of rent.
Barnett Ross have 60 years experience, I have 40. Our combined 100 years experience added-up, to quote Barnett Ross's post-auction comment: "2.4% What a price!!! Defies valuation"
Please click on a property address to reveal information about my involvement.
Barkingside - 72 High Street - let to HSBC: rent review and valuation
I act for the Landlord, the tenant is HSBC plc,
which also leases adjoining premises at 74 High
Street and which is owned by a different landlord.
I deal with rent reviews and matters arising.
I deal with rent reviews and matters arising.
Bedford - 38-40 High Street - let to Debenhams, rent review
Arranged on basement, ground and upper floors, the entire property, which adjoins its store, is let to Debenhams.
For the Landlord, I am dealing with the 2008 rent review.
Canvey Island - 45 and 51 Furtherwick Road - rent reviews and tenancy advice
I act for the Landlord and deal with rent reviews and tenancy matters arising. When the owner of an adjoining building sought my Client's consent to allow an easement for the electricity supply, I advised on the terms and conditions of the deed with Eon.
Collier Row - 34 Collier Row Road - rent review and advice
I act for the Landlord. The property is in one the
best trading positions in Collier Row Road, I
advised on the letting to Help the Aged and
subsequent assignments including change of use to a
greeting cards shop. I arranged sale of the flat
above by auction. The 2010 rent review is in
hand.
Dudley - 66-67 High Street - rent review and CVA claim
For the Landlord, I advised on the 2006 rent review and the CVA claim. The 2006 review was referred to an independent expert for determination, but abandoned when the CVA was approved. I dealt with the CVA claim and negotiated the fees payable to the expert as part of the CVA claim.
Eastleigh - 90 Market Street - rent review, probate valuation, letting
I act for the Executors, having acted for the
Landlord for more than 10 years. The premises were
let to Three Cooks. I have dealt with rent reviews
and provided a valuation for probate. At present,
the premises are on the market to let.
Gorleston-on-Sea - 115 High Street - t/a Peacocks
Greenford - 30 and 32 The Broadway - tenancy advice, renewals, new letting
No. 30 - In 2001, I negotiated restructuring of the lease to Oxfam so that the flat above was surrendered to the landlord. In 2006, Oxfam decided not to renew its lease on expiry so I handled the dilapidations claim and arranged new letting of the shop to UK Pet Centres. The rent devalues to approximately £44.75 Zone A which is one of if not the highest rent in this part of the parade.
No. 32 - The entire property (shop and flat) was let to O & H Properties Ltd which in turn had sub-let the flat and shop separately. In 2007, I advised on the dilapidations claim, requiring the Lessee to carry out major repairs to the structure. Also, I negotiated renewal of the tenancy of the shop and which is now let on lease outside the Landlord and Tenant Act 1954.
Hillingdon - Long Lane - 376 and 390 - rent reviews and advice
My Client is the Landlord of 376 and 390 Long Lane.
I advise on rent reviews and tenancy matters.
376 is let as an off-licence and as a sub-post office, on two separate leases to different tenants. 390 is let to a funeral director.
376 is let as an off-licence and as a sub-post office, on two separate leases to different tenants. 390 is let to a funeral director.
High Wycombe - 190 Cressex Road - rent review, renewal and tenancy advice
I
am managing agent for the Landlord. For many
years, the property, a shop and flat, was let
to Forbuoys newsagents. In 2005, following
negotiations for renewal at around £15,000 pa,
Forbuoys did not renew. I arranged letting to
an established local hairdressing business for
15 years at £20,000 a year.
Ilford - 314 llford Lane - rent reviews and lease advice
Acting for the Landlord, I negotiate rent reviews
and provide lease advice for matters arising.
The rent has almost doubled in recent years.
The rent has almost doubled in recent years.
London E13 - Upton Park - 384 Green Street - rent review arbitration for the landlord: 30% increase
In a corner position, at the junction with Harold Road, and close to Upton Park Station, the property is a ground floor shop with ancillary space on two floors above. It also has on-site parking for 1-2 vehicles in its own yard. The trading position is amongst the finest, with Peacocks, Iceland and Tesco Metro a few doors along in the same parade.
The review was referred to arbitration. In my submission, I opined Zone A £60. During the proceedings, evidence of the letting to Habib Bank in the same parade was examined in detail and I suggested 10% deduction which reduced the Zone A to £54. So, whilst I think the award at Zone A £50 a little low, because Zone A £60 had been achieved nearby, at the end of 2007, involving an unrepresented tenant; and local opinion suggested around £70 elsewhere, gathering the evidence into a form suitable for carrying much weight or meaning was not possible, so I was unable to comply with the arbitrator's directions in some respects. Upton Park is notoriously an area in which reliable and/or meaningful evidence is hard to come by.
The tenant's expert witness surveyor was of the opinion the rent should not increase and cited evidence of 2005 reviews at Zone A £38.75 in the same parade. I disagreed with that as evidence, because it involved large stores which, in my experienced, are normally valued overall, rather than in zones. Also, a contention that because Zone A £41 had been agreed a year before letting the premises to Habib Bank was discounted, because it is not unusual for a negotiated settlement to be less than the Zone A level after exposure to the market.
The investment remains slightly reversionary, because, assuming all other factors remaining constant, on expiry of the lease in 2013 a 5% allowance for the hypothetical term would not apply, so the rent would go up by another £2000 pa or so.
I am particular happy about a couple of points. There are 4 advertising panels on the return frontage for which at previous reviews the tenant had resisted paying. This time, I got £250 a year.
Also, I managed to convince the arbitrator that evidence of rent on a sale-and-leaseback, when the investment is offered for sale in the open market, must contain some element of realism, so should not be disregarded. Since HSBC had sold at auction a leaseback of its branch at 349 Green Street in March 2007, the Zone A rate was assessed at £45 Zone A.
My Client bought the investment in 1988 when it was offered for sale by auction on a sale-and leaseback, with 5 yearly rent reviews. Because of the difficulty over the years experienced by other landlords and their surveyors, not just me, in finding hard evidence because of a paucity of new lettings to show proper increase, the rent has never previously gone up by much. Although the revised rent is just over double what it was in 1988 and at each review there has been some increase, this is the first time since 1988 the rent has been assessed objectively and the increase approximately 30%
London N1 - Hoxton - 15 Hoxton Market - The Real Greek Restaurant
For years, I have acted for the Landlord and
successors dealing with rent reviews, tenancy
advice, valuation for probate and agreeing the
value with the Inland Revenue. I advised on the
letting to The Real Greek restaurant, and am
Managing Agent.
London N1 - Islington - 315 and 316 Upper Street - rent reviews, lettings and lease advice
Acting for a Landlord, I negotiate rent reviews and
provide lease advice for matters arising.
Other properties I have dealt with in Islington include 1A Florence Street, 274 and 275 Upper Street, and 104 Islington High Street.
Other properties I have dealt with in Islington include 1A Florence Street, 274 and 275 Upper Street, and 104 Islington High Street.
London SE18 - Woolwich - 71-77 Powis Street - rent reviews and advice
My Client, the superior Landlord, owns the freehold of the front section of the property, a ground lease for a term of 999 years of the back section and 99-year lease of the middle section. The middle section is built on a raft over the railway tracks and the rent for that section is a percentage of the entire property. My Client leases the whole property to Powis Street Estates which in turns sub-lets to New Look.
The 99-year lease has rent reviews every 21 years and the lease between my Client and Powis Street Estates also contains rent reviews at 21 year intervals.
For the 1995 rent review, when the store was let to Littlewoods, the review was referred to arbitration, the arbitrator was a senior partner of Jones Lang LaSalle. Littlewoods was represented by a partner of Healey & Baker (now Cushman & Wakefield). In the respective submissions, we considered the rents of stores throughout Greater London. The Award was at almost the same rent as I had originally proposed.
For the 99-year lease review, where my landlord-client is the tenant, other factors were involved reflects differences in the leases. To minimise the proposed increase in rent, I had to research the development history of the building including obtaining copy documents from the solicitors that had acted for the original landlord in 1974.
London W3 - Acton - 82 Old Oak Common Lane - rent reviews, expiry and advice
I act for the Landlord. The property, which has A2
use, was originally let to Midland Bank and
subsequently to William Hill in 1999. I have dealt
with all rent reviews and tenancy issues. In 2009,
I concluded the 2004 rent review and am now dealing
with the 2010 renewal.
My Client used to own 51 and 53 Old Oak Common Lane. For another Landlord, I dealt with the review at 4 Western Avenue when those premises were let to National Westminster Bank.
My Client used to own 51 and 53 Old Oak Common Lane. For another Landlord, I dealt with the review at 4 Western Avenue when those premises were let to National Westminster Bank.
London W4 - Chiswick - 130 and 132 Chiswick High Road - rent reviews and advice
The properties two adjoining shops with basement
and residential accommodation above. For the
landlord, I have dealt with the rent reviews and
lease advice generally.
London W9 - Maida Vale - 406 Harrow Road - rent reviews and privity claim
The property comprises shop and offices on ground
and basement, and self-contained residential flat
on the upper floors.
The property is let on 2 leases to the same tenant. The original tenant is a housing association.
For the Landlord, I have dealt with the rent reviews every 5 years since 1984 and am at present dealing with a privity of contract claim and matters arising.
The property is let on 2 leases to the same tenant. The original tenant is a housing association.
For the Landlord, I have dealt with the rent reviews every 5 years since 1984 and am at present dealing with a privity of contract claim and matters arising.
Newton Abbot - Brunel Way - McDougall Rose and Tobys - trade counter rent reviews
Both tenants, McDougall Rose, (an ICI company), and Tobys have been in occupation for years.
The tenancies were renewed in 2008. The property has long-term redevelopment potential.
Northolt - 493-503 Yeading Lane - rent review, expiry and advice
The Landlord's building comprises a parade of
ground floor shops with separate flats above. The
Landlord used to occupy the largest shop for his
business and bought the building at auction. The
premises previously occupied by the Landlord are
let to the buyer of the Landlord's business.
I am Managing Agent for the shops and advise on rent reviews, lease renewals, and tenancy matters arising.
Recent advice included a surrender of a tenancy where the multiple-retailer tenant wanted to assign the residue of its lease, for which there would have been no objection, but I said that renewal of the tenancy to any assignee would be opposed under the 5-year rule. The surrender consideration was statutory compensation per the Rateable Value of the shop plus a nominal amount for the flat.
I am Managing Agent for the shops and advise on rent reviews, lease renewals, and tenancy matters arising.
Recent advice included a surrender of a tenancy where the multiple-retailer tenant wanted to assign the residue of its lease, for which there would have been no objection, but I said that renewal of the tenancy to any assignee would be opposed under the 5-year rule. The surrender consideration was statutory compensation per the Rateable Value of the shop plus a nominal amount for the flat.
Polegate - High Street - rent reviews for a landlord
Pontypridd - Bowls Centre and Car Park - ground lease rent review and lease advice
I also advised the landlord on the wording of a deed of variation.
Surbiton - 6 St James Road - upward/downward rent review achieves 10% increase
Acting for a Landlord, I negotiated 10% increase at
September 2008 rent review in a lease which has an
upward or downwards rent review clause.
Teddington - 27 Broad Street - expiry, reviews and advice
I act for the Landlord. Originally, the property
was a ground floor shop with residential
accommodation above, let to one tenant.
When that tenant did not renew its lease, my Client converted the residential accommodation into two flats and which were then sold off on long leases. I advise on the expiry, the letting and subsequent restructuring of the lease of the shop to the present tenant t/a Caffe Mimmo. I am dealing with the 2010 rent review.
When that tenant did not renew its lease, my Client converted the residential accommodation into two flats and which were then sold off on long leases. I advise on the expiry, the letting and subsequent restructuring of the lease of the shop to the present tenant t/a Caffe Mimmo. I am dealing with the 2010 rent review.
Twickenham - 44 King Street - investment advice and reviews
I act for the Landlord and the investment (shop
with flat above let to one tenant) was bought at
auction. The tenant went broke, following which my
Client sold off the flat. The ground floor shop was
let to a hairdresser, having several branches. Part
of the premises was shared with a complementary
business. When the hairdresser wanted to retire,
the lease was assigned to another hairdresser and
circumstances at the time involving my Client
enabled the tenant to circumvent my involvement and
go ahead with the assignment without having the
matter properly dealt with. In the event, the
assignee went broke whereupon I advised the
Landlord on the privity of contract claim, a
possible reletting of the premises to the business
that had shared the premises, and a reletting to a
new tenant, now trading as Courtyard Hairdressing.
Welwyn - 14 High Street - rent review 'arbitration'
The Landlord bought the property at auction, the tenant, T & S Stores, trades as Tesco Express. The investment was bought with the review outstanding and I was instructed to deal with the review. The tenant's surveyors were emphatic at no increase so I arranged referral to an independent expert. The determination resulted in an increase.
During negotiations, the tenant's surveyor was so hostile towards me that after one telephone conversation I was physically shaking. After that, I promised myself I would never again shop at Tesco.
Wembley - 5 Neeld Parade, Wembley Hill Road - freehold sale price "defies valuation"
At the junction with High Road and adjoining William Hill, and approximately 100 yards from the southern approach walkway to the new Wembley Stadium and Wembley Stadium Station, the property is a ground floor shop with first floor rear storage, and self-contained 5KB flat on two floors above.
The shop has A3 use (restaurant/coffee bar).
Gross frontage 20'5"
Net frontage 14'9" widening to 17'2"
Shop depth 55'4"
Built depth 100'11"
Rear storage, approximately 180 sqft
The entire property is let for 20 years from 25 December 1989. The passing rent £14,000 was fixed in 1990 and no action was taken for the 2005 rent review. The lease expires in 2009.
The guide price was £350,000 and the property was sold for £595,000. In addition, the buyer paid my Client approximately £7000 for arrears of rent.
Barnett Ross have 60 years experience, I have 40. Our combined 100 years experience added-up, to quote Barnett Ross's post-auction comment: "2.4% What a price!!! Defies valuation"
Please click here for a slide-show gallery of photographs of the sort of properties and locations where I advise.
I have negotiated rent reviews and/or provided advice to landlords in almost every postal district in Central and Greater London.
To contact me, please telephone 01531 631892 or email help@michaellever.co.uk
I look forward to helping you in some way.
Michael Lever