Rent Reviews and Lease Renewals
Croft Surveyors act for both Landlords and Tenants in the matter of rent reviews and Lease Renewals where in the majority of cases of commercial leases there is provision for rent reviews that fall within a 3,4 or 5 yearly pattern.
The issues of establishing the open market rental value at the date of review are often protracted, rarely straightforward and an informed market intelligence to prove comparable market evidence is essential.
The Landlord and the tenant will naturally have differing demands regarding the outcome of a rent review and with our knowledge of the market place we can make a significant difference to the outcome of the rent review negotiations. Our knowledge and experience in these matters will enable us to weigh the issues that will significantly influence the outcome and by way of forward planning create a proactive strategy towards a review rather than be reactive to the actions of the opposing party.
In order to assist we would welcome the opportunity to provide an appraisal on your property and discuss the market and how it is likely to affect your rent then read and comment upon your lease in order that we can recommend a strategy for the review.
From June 2004 amendments to the Landlord & Tenant Act (1954) came into force ensuring that Civil Procedure Rules apply regarding all commercial property lease renewals.
This has had a significant impact and created complications on the serving of notices, applications to Court, interim rents and the terminations of leases meaning that professional advice is very important in dealing with the correct procedures.
As with the process of rent review, we are of the opinion that it is sound estate management practice that the renewal (or not as may be the case) is considered well in advance of the actual renewal date. This will enable the consideration of many factors the most important being market rent, lease repairs, dilapidations and the question (in the case of a tenant) of either to stay, or relocate, as part of their immediate or future requirements.
We would be pleased to be able to provide initial information and guidance on the options available regarding your business objectives relating to the landlord and tenant obligations of a lease renewal.
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