Rent Review & Lease Renewal - FAQs


David Goodchild David Goodchild
Director - Head of Division

01727 732222

Francis Tomlinson Francis Tomlinson
Director


01462 434455


Laurence Barton Laurence Barton
Director


020 7518 3440

Please Click a Question to scroll down to the answers below

Q. The landlord has served a proposal to significantly increase my rent. What should I do?
Q. At rent review can rental go up or down?
Q. The tenant/landlord won't agree to the rental that I am proposing. Should I refer the matter to an arbitrator/independent expert?
Q. The term on the lease of the property that I occupy comes to an end shortly. Can the landlord get me out of the property?
Q. On what grounds can the Landlord oppose renewal of my tenancy?
Q. What will the revised rental under the new lease be?
Q. What will be the terms of the new lease?

 


Q. The landlord has served a proposal to significantly increase my rent. What should I do?

A. Dependent on the terms within your lease it may be essential to serve a counter notice on the landlord. Normally any increase in rent from that currently passing will have to be justified with reference to comparable market evidence. It is the analysis and interpretation of this evidence and the understanding of relevant case law that forms the basis of advice provided by expert rent review surveyors.

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Q. At rent review can rental go up or down?

A. The majority, but not all, leases contain rent review clauses which allow for upward only rent reviews. It is therefore essential to read through the lease

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Q. The tenant/landlord won't agree to the rental that I am proposing. Should I refer the matter to an arbitrator/independent expert?

A. Normally within the rent review clause of the lease there will be the ability to refer the matter of the rent review where it is not agreed to a third party. This will normally be done by applying to the RICS for the appointment of an arbitrator/expert. The cost of this third party will be shared between the parties although an arbitrator may award costs against a party. It is essential that advice is sought from a professional that has experience of third party procedures and the presentation of evidence, and he should report on the likely costs and the risks of the third party procedure.

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Q. The term on the lease of the property that I occupy comes to an end shortly. Can the landlord get me out of the property?

A. Normally if you occupy premises for business purposes on a tenancy you will benefit from the Security of Tenure Provisions of the Landlord and Tenant legislation. This legislation gives the tenant the right to apply for a new tenancy subject only to specified grounds of opposition.

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Q. On what grounds can the Landlord oppose renewal of my tenancy?

A. The landlord may be able to successfully oppose the granting of a new tenancy on the following grounds:

  1. the legislation does not apply
  2. failure to repair or maintain the premises
  3. persistent delay in paying rent
  4. substantial breaches of obligations under the tenancy
  5. alternative accommodation offered to the tenant
  6. the landlord would obtain a better return if the premises were let or sold as part of a larger unit
  7. intention to demolish or reconstruct
  8. landlord's intent to occupy the premises.

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Q. What will the revised rental under the new lease be?

A. The rental is open to negotiation between the parties and in default of agreement the court will have regard to the terms of the tenancy and determine a rent at which the holding might reasonably be expected to be let in the open market by a willing lessor, disregarding occupation of the holding by the tenant, any goodwill attached to the holding, any effect of the tenants improvements.

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Q. What will be the terms of the new lease?

A. The terms of the new lease are subject to negotiation, although in the absence of agreement the terms will be determined by the court. The maximum length of a new tenancy will normally be 15 years with the other terms normally following the existing lease, although this may be dependent upon existing case law, market practice and individual circumstances of each case.

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