Rent
Review
To
arrive at the right figure, the words must add up.
A lease is a legal document that defines the relationship
between the landlord and the tenant. Leases vary in length
from just a few lines to more than 100 pages and, contrary
to popular belief, there is no standard form of lease in
use generally, so the actual wording of the terms and
conditions of each lease - the 'small print' - will differ.
All leases contain guidelines for operating the review,
agreeing the rent, resolving disputes, responsibility for
costs, completing the process and paying the new rent.
Generally, a rent review is based on the market rent, and
considered objectively, by reference to new lettings, other
rent reviews and lease renewals in the vicinity, all of
which is known as the "comparable evidence".
A rent review is by no means straightforward. Not only
might it be necessary to make valuation adjustments when
considering the comparable evidence, but also there is no
standard lease in use generally, so guidelines vary, from
the most detailed to the ambiguous and vague. In addition,
because what happens during the term of a lease can change
- for example, an assignment to a new tenant, and/or the
premises sub-let, the head-lease (if any) and/or freehold
investment sold to a new landlord, possibly licences and
supplementary deeds entered into - any variations over the
years that affect the lease, including those contained in
documents related to the lease, can often introduce further
complexities at rent review. And that is before considering
the effect of any changes in business tenancy law and/or
different approaches to rental valuation, which can mean
that the basis upon which a previous rent review was agreed
may not be the same now or in future. In short, because
there are so many different permutations to consider,
including the fact that each landlord and tenant is
different, every shop is different and because business
tenancy law and valuation work both ways, the landlord or
tenant is often in a stronger position.
In my opinion, there's no point in having a lease and then
not sticking to it.
Many landlords and tenants agree rent reviews between
themselves frequently ignoring the guidelines in the lease
but, in my experience, such agreements can often produce
the wrong result. Often, the landlord loses out.
Frequently, the tenant ends up paying more than necessary.
In my opinion, there is no point in having a lease and then
not sticking to it.
You will also enjoy subtle advantages in my acting for you.
It puts a shield between you and the landlord or tenant,
which will help with decisions, and you can rest assured
your best interests are being served and carefully
looked-after throughout. With expertise and guidance at
every step of the way.
My comprehensive service includes all aspects of the review
process, from serving notices, inspecting the premises,
gathering evidence, to conducting negotiations, if need be
'going to arbitration', and finalizing the memorandum.
To
contact me, please telephone
01531 631892 or
email help@michaellever.co.uk
I
look forward to helping you in some way.
Michael
Lever