Delamere acts on behalf of many landlords and tenants in South Cheshire on rent reviews and lease renewals. Recently Ben has acted for many independent and regional businesses and investors and acting against national retailers and banks involved in rent reviews and lease renewals.
Professional advice is vital for both landlords and tenants! Many tenants do not take advice when it comes to rent reviews and lease renewals, relying on their own negotiating skills, however the outcome is often the reverse, since having an agent can save you many thousands of pounds in rent by negotiating on your behalf to make sure rent increases are fair and implemented correctly.
We operate in a flexible, non-corporate style, working on very competitive and fixed fees to act on your behalf, saving you costs and agreeing best terms on your new lease or rent review date whilst avoiding the many procedural pitfalls along the way.
In many cases tenants do not take advice and suffer from rents becoming increased above market level where landlord’s push for unfair and greedy rent rises, too often rents are pushed to the extent that businesses are no longer viable and are forced to close, this is where we can help!
We have included a list of FAQs below explaining many of the scenarios and obstacles tenants usually encounter with standard commercial leases, and I would be happy to speak with you or meet at your convenience for a no-obligation chat about your
FAQs
Why should we appoint a lease consultant for our rent review?
Rent reviews can often be technical and complex. Appointing a surveyor is the most effective way of valuing the property’s rent in the open market, taking into account the local market evidence and negotiating specific allowances which can make drastic differences to the final rent figure. Surveyor’s fees can be seen as expensive; however they are usually very inexpensive compared to an unfairly high or low rent, particularly in cases of arbitration.
How does rent review take place and how often?
Rent review can take place in various ways however, the most common are stepped rents and open market rent reviews. If you are unsure then we will advise you on what happens next. Open market rent reviews can be very complex, and appointing a surveyor allows the rent to be set at a level in-line with the market at the time of review, they are normally every 3 or 5 years from the start of your lease. At the time of review, the procedure can be commenced either by notice or by the parties entering into negotiations.
What if the parties cannot agree?
Where the rent cannot be mutually agreed, the matter will be referred to the RICS for Dispute Resolution, either by an Independent Expert or an Arbitrator, both cases result in increased costs and delay for both parties. Third party Dispute Resolution is usually avoidable, however in times of difficulty or a challenging economy it is more common for both sides to be unable to agree.
What can we do for you?
Assessment of Rental Value
As part of our rent review consultancy service we will assess the rental value of the property, for this we will require a copy of the Lease and any other relevant documentation, and we will also inspect the property to take accurate measurements, applying those measurements according to the type of property.
Once we have carried out a physical inspection of the property and considered the terms of the Lease, we will carry out all other necessary enquiries and use our own knowledge and expertise in order to ascertain the rental value of the property applicable at the rent review date.
We will then report to you setting out the market rental value of the premises, as required by the Lease, and will provide recommendations and advice to progress the matter further.
What is “Open Market Rent”?
Open Market Rent is the rent a property might reasonably achieve if let on the open market, given a willing landlord and tenant and taking into account the terms of the lease and the local market.
Negotiations
Once we have reported our findings, we will be pleased to enter into negotiations. It is always our intention to reach an amicable settlement with the other side, as this will maintain a good Landlord and Tenant relationship and minimise costs for both parties. In the majority of cases, rent reviews are settled amicably without the need for third party dispute resolution.
Third Party Determination
In a small number of cases, for whatever reason, the parties may not be able to reach an amicable agreement so far as the Rent Review is concerned. In these circumstances we can represent you to ensure a fair outcome.
Lease Renewals
When the lease expires and it’s time to renew there is a (potentially) complicated legal process to go through, and without proper advice there are many pitfalls which can result in landlords and tenants not getting the best deal, especially when it comes to costs. Whether you are the Landlord or the Tenant of a commercial property, it is essential that you are aware of the date at which the Lease will come to an end. If a Lease falls within the Landlord and Tenant Act 1954 the Lease to an end by serving the correct notice (the Landlord serving Section 25 Notice or the Tenant a Section 26 Notice). In either case, the Notices cannot be served more than twelve months, and no less than six months prior to the expiry of the term and, furthermore, the Notices cannot stipulate a date for expiry earlier than the actual end of the contractual term.
In the case of a Lease renewal, the rent can either go up or down from the existing rent payable, as opposed to rent reviews which usually have an upward-only provision.
Does the tenant pay rent while the level of rent is being disputed?
Yes. The tenant must pay rent at the passing rate throughout the rent review process. Once an agreement is reached the difference (back rent) will be paid. If the rent increases, interest often has to be paid on the overdue amount.
CONTACT US TO DISCUSS YOUR SITE
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