Rent Review
Leases contain guidelines and instructions for the rent review, time limits for serving notices, agreeing the rent, resolving disputes, responsibility for costs, completing the process, and paying the new rent.
On review, unless the rent is formulaic, for example index-linked or fixed uplift, generally, the rent is the (open) market rent. (‘Open’ is superfluous: from a bygone era when markets were not open to everyone.) Market rent is an informed, objective opinion of what the premises would fetch if available to let on the valuation date. The valuation date is usually the same as the review date, unless otherwise stated in the lease. However, when premises are let, the market cannot be tested, so the review process relies on a combination of the valuation guidelines in the lease and informed opinion, which includes the interpretation of evidence.
With business premises, every lease is different. So is every landlord, every tenant, and every property. And so is everything else. For example, comparable evidence doesn’t just mean rent; it includes all the tenancy terms and conditions and associated documents.
Valuation isn’t only about what rents others have agreed: it also means comparing the type of premises, size, construction, use, layout, configuration, location, trading position, etc. And it is not only the wording of documents that can make a difference: changes in business tenancy law and new approaches to valuation can also affect the rent.
My comprehensive rent review service includes all aspects of the procedure, from serving notices, inspecting the premises, researching evidence, conducting negotiations, if need be, “going to arbitration”, to drafting and finalising the memorandum to record the revised rent, and calculating the back rent payable and any interest. With specialist help and advice at every step of the way.
To contact me, please email help@michaellever.co.uk or telephone 01531 631892
I look forward to helping you in some way.
Michael Lever
PS – For a good deal of free advice, please visit ML Guides.