Lease Consultancy

Our service to both investors and occupiers includes the analysis and interpretation of lease terms and rent review clauses to provide valuation advice and the impact those terms will have at times of rent review and lease renewal.

We will endeavour to identify opportunities arising from the lease terms for maximising or minimising rent increases on each of those occassions.

We provide advice to investors and occupiers and their legal advisors during the lease drafting process on the practical implications of proposed rent review provisions, other lease terms and their inter-relationship.

We are able to identify and advise on opportunities for, and the practical implications of, restructuring existing leases

Rent Review

The process for reviewing the rent is set out in the terms of the lease and there may, or may not be, provisions for the services of notices in that lease.

Time limits may have to be complied with , but not generally, and if there are no limits a landlord may be able to instigate a rent review some time after the due date leading to a potential liability for back rent. Additionally interest on that back rent may also be payable.

The lease will set out the procedure for agreeing the rent and should include a process for the rent to be settled by an arbitrator or independent expert. Both processes will be binding on the parties.

Lease renewals

The principal act governing lease renewals is the Landlord & Tenant Act 1954 and a lease of business premises continues indefinitely after expiry ( called holding over ) until determined by the landlord or the tenant.

Unless there is a break clause , the tenant is committed to the lease and pay the rent due for its duration.

A tenant has the right to renew the lease ( called security of tenure ) unless the landlord can prove one of several grounds for possession.

Limited compensation is payable to the tenant in certain circumstances if the landlord opposes a new lease.

A lease may be excluded from the security of tenure provisions of the '54 Act by prior agreement between the landlord and tenant provided this is done before the lease commences. In such cases the tenant has no automatic right to renew and may be required to leave on expiry of the lease term.

The new lease will usually be on broadly the same terms as the old lease but may be updated, if appropriate.