In a prominent corner position facing the Arsenal Emirates Stadium, which at the time of the rent review was under construction, I acted for the Tenant, trading as Little Wonder Cafe.
The premises comprise two separate lock-up shops at the junction of Hornsey Road and Benwell Road, London N7. The combined area is approximately 800 sqft. The use is A3.
The rent was £15,000 per annum and for the review in March 2005 the Landlord proposed £30,000 per annum.
Before instructing me, the Tenant, through his Solicitors, had tried to negotiate with the Landlord's chartered surveyor and had offered £17,250 pa. Because the Stadium was being built, my Client's cafe was packed out with construction workers on a daily basis and his business was booming.
Despite my reasoning the review guidelines in the lease specifically assuming vacant possession and disregard of any value attributable to the tenant's occupation or goodwill, the Landlord dismissed my suggested £18,000-£19,000 pa and would not accept less than £25,000 per annum.
Normally, when the rent is relatively low, I am reluctant to recommend arbitration, because the extra costs for the Client can be disproportionate but, in this case, I had no choice. I presented written submissions. The Award was £17,460 per annum.
A saving £12,540 per annum