Rent Review & Lease Renewal
Providing professional advice regarding rent reviews and lease renewals.
What is a Rent Review & Lease Renewal?
When a commercial property is let there is usually a tenancy agreement in place and the majority of times the agreement is a commercial lease.
The lease is a legally binding contract between the landlord and the tenant that basically grants the tenant the right to use the property in return for rent. The lease will also set out responsibilities and obligations for both the landlord and tenant, such as repairs and maintenance.
Typically, the lease will be for several years, such as 10 or 15 years, and this period of time is known as the term. There will be clauses within the lease relating to the rent and how it is to be revised during the agreed term, which is known as a ‘rent review’.
When a lease term comes to an end (lease expiry), a lease renewal usually commences and similarly the rent will be reviewed along with other terms (i.e. clauses) of the lease.
When will the rent review or lease renewal take place?
The frequency of the rent review is usually every five years, however it fundamentally comes down to what has been written and agreed to within the lease. In terms of a lease renewal this usually takes place when the lease expires and is govern by the Landlord and Tenant Act 1954 (LTA 1954).
How Blackacre Surveyors can assist
If you are a tenant dealing with a rent review or a landlord looking to initiate the rent review, we at Blackacre surveyors can assist. Even if it is mid-term and you require advice or assistance with lease restructuring, we can also help.
We can advise either landlords or tenants in the event of a commercial rent review or lease renewal. We have the experience and expertise to provide strategic advice and aim to obtain the best possible outcome when negotiating the rent and terms of the lease.