ADB | RENT REVIEWS |
There are a proportion of older leases that state that time is the essence for the service of rent review notices and it is essential that leases be checked in good time in advance of the review date (often more than 12 months before) to identify if this wording is
time limits are or the tenant’s
strictly adhered to, ability to challenge
the quoted rent may be lost.
specifically specify that time is of the essence for the service of rent review notices and the conduct of the rent review itself, the inter- relationship of other clauses within the lease can give rise to the same
between the timing of the rent review notice and the serving of a notice to exercise a break option.
In any event, it is
implicit in the lease and to ensure any necessary steps are diarised well in advance of the review date.
are one establish these are
of the key points to early on and typically formulated against the
backdrop trends. example,
of market conditions and In a rising market, for the tenant may be best
arising subsequent to the date that demonstrates a
rental level than that arisen prior. Whilst evidence closest to the
which had comparable review date
a: 24 Old Burlington Street, Mayfair, London, W1S 3AW
is considered the most relevant, it is also appropriate to have proper regard to comparable transactions that have been concluded at other times.
aspects of influence
the lease may
These may include for
subsequent to Typically, most
the review date. modern leases will
subsequent date, the
to the difference
between the old rent rent is accrued as
and the new a debt and
repaid with settlement.
Some leases apply relatively penal rates of interest at 2-3% above base, by way of example, which is essentially an incentive for the tenant to reach a settlement as early as possible.
Other issues such as the third party procedures, including whether it is to be an Expert or Arbitrator appointed, are considerations when establishing a
This particular topic is
primary goals to the outset when strategy for the
review is to seek any advantageous alliances with other parties in the geographical area with similar types of premises who
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