Tel: 0151 227 9191     |     Email: andreworme@orme-associates.co.uk

Rent Review & Business Lease Renewal

Orme Associates can represent you in respect of a rent review. They appear in most commercial leases granted for a term of five years or more, are typically every three or five years, and are frequently upward only. The main types of rent review are a review to open market value (OMV) which are to be agreed between the parties to the lease, and reviews to increase in line with the Retail Price Index, which will increase by specific amounts, however mistakes are sometimes made. It is important to have regard to the terms of a rent review in particular the Review Date, which if missed can sometimes leave the rent fixed until the following review, albeit the wording of many leases will attempt to permit a Review Date to be overlooked.

Lease Renewals are possible by a tenant under the Landlord and Tenant Act 1954 by service of a tenants notice under section 26 (a s.26 notice) on the Landlord, and they will similarly require an assessment of the new rent to appear in the lease (this is not possible where a lease is contracted out of the Landlord and Tenant Act 1954). Unlike many rent reviews it is possible to propose a rent reduction upon lease renewal. The Landlord can oppose a lease renewal on grounds specified in the 1954 Act, the most common are (i) the landlord wishes to occupy himself, and (ii) the landlord wishes to re-develop the property which cannot reasonably take place with the tenant in occupation, and (iii) the tenant is in or has previously breached the lease. If the parties fail to agree terms application to the County Court can be made.

Out fact sheet on rent review and lease renewal is at linkĀ Rent Review & Lease Renewal Factsheet

 

CONTACT ORME ASSOCIATES




Message us on Facebook

Orme Associates Property Advisers is the trading name of Monument Square Ltd (Co Reg. No 09909965), registered office The Arts Village, 20 Henry Street, Liverpool, L1 5BS