About rent reviews/lease renewals
Rent reviews and lease renewals are extremely important events for all businesses that occupy their premises by way of a lease or for Landlords who have granted occupational leases to their tenants.
For further infomation call (Low cost/local rate) 0844 879 3613 and ask for Richard Sellers or email richard.sellers@fairhurst-eststes.co.uk quoting rent reviews.
Rent Reviews
Fairhurst Estates has a wealth of experience in dealing with rent reviews for both Landlords and Tenants throughout the United Kingdom. Upon receipt of a new instruction, an experienced Chartered Surveyor will review the lease and after agreeing a fee, will serve an appropriate Rent Review Notice or Counter Notice. The premises will then be inspected and measured in accordance with the RICS Code of Measuring Practice and a Rent Review Report will be produced with photographs; an OS extract plan, a summary of the lease terms and a rental valuation and recommendation will also be provided, before we negotiate a fair market rent with the Landlord/Tenant or their agent. After reaching a settlement and receiving client’s approval, the Rent Review Memorandum will then be completed, with one copy then being attached to the lease for safe-keeping.
If an amicable settlement is not reached with the other party, then the rent review may be referred to an Independent Expert or Arbitrator (depending upon the terms of the lease and upon the client’s instruction). Fairhurst Estates Ltd. will prepare detailed written submissions for the Third Party surveyor who will determine the Rent Review, after taking account of the evidence that has been put before him by both sides.
Lease Renewals
In England and Wales, a lease continues until it is terminated by either a Landlord or Tenant (unless the lease excludes security of tenure).
Fairhurst Estates has a wealth of experience in dealing with lease renewals for both Landlords and Tenants throughout the United Kingdom. Upon taking a new instruction, an experienced Chartered Surveyor will read the lease, agree a fee with you and liaise with your solicitor. The premises will then be inspected and measured in accordance with the RICS Code of Measuring Practice and a Lease Renewal Report will be produced with photographs plus an OS extract plan. A summary of the lease terms, a rental valuation and recommendation will also be provided. We will then negotiate a fair market rent with the Landlord/Tenant or their agent, together with the remaining lease terms. A lease renewal is an ideal opportunity to vary the terms of the existing lease, such as inserting a break clause, or removing potentially onerous lease covenants. After reaching a settlement and receiving the client’s approval, Fairhurst Estates will instruct your solicitors accordingly. If terms cannot be agreed then the matter will be referred to Court and we can attend as an Expert Witness to defend your case as required.
Tenant Information
For further infomation call Fairhurst Estates on 0844 800 9358 and ask for Richard Sellers or email richard.sellers@fairhurst-estates.co.uk and quote rent reviews.
Rent Reviews
If you are a tenant and a Landlord has served a Rent Review Notice, then it is vitally important that you take professional advice to ensure that the agreed rent is a fair market rent and not the rent that is proposed within the Rent Review Notice. It will be essential that a Counter Notice be served in response to the Rent
Review Notice as in accordance with the terms of the lease. Although the Landlord may claim that the rent proposed in the Rent Review Notice is a fair market rent, it is invariably his/her inflated opinion of the market rent. If there is a Time of the Essence clause within the Rent Review clause, and a correct Counter Notice has not been served in accordance with the terms of the lease, then the rent may well be fixed at the rent quoted in the Landlord’s Rent Review Notice. The agreed rent will be fixed until the next rent review, so it is therefore essential that a fair market rent is agreed. If a saving of £5,000 per annum is made from the Landlord’s rental proposal this will save the Tenant £25,000, (based on a 5 yearly rent review pattern).
Lease Renewals
If you are a tenant and the Landlord has served a Section 25 Notice to terminate your lease as soon as possible, it is very important that you take the advice from a Solicitor and a Chartered Surveyor as soon as possible. If terms for a new lease are not negotiated prior to the termination date, then a Tenant may lose their security of tenure and the right to renew the lease. A lease renewal is an important issue for a Tenant as it may be possible to vary the terms of the existing lease (as discussed above.) Alternatively a tenant may not have heard from the Landlord and would wish to agree to a lease renewal. In this case a Section 26 notice can be served on the Landlord (ideally from your Solicitor), which will bring the lease to an end; and requesting a new lease.
Landlord information
Speak to Fairhurst Estates for specialist advice. Call 0844 800 9358 and ask for Richard Sellers or email richard.sellers@fairhurst-estates.co.uk and quote rent reviews.
Rent Reviews
If you are a Landlord, then it important that you are aware when your tenants have a forthcoming rent review in order to plan for the growth of your investment (assuming an upwards only rent review pattern). It will be essential that you serve a Rent Review Notice in accordance with the lease terms and negotiate a fair market rent for the premises.
Lease Renewals
If you are a landlord then it is vitally important to act promptly when your Tenant’s lease is due to expire. In England & Wales, if no action is taken, then an occupational lease will continue after the expiry date (unless it excludes security of tenure). It is therefore vitally important that a Section 25 Notice is served on your Tenant (ideally from your solicitor) in order that the existing lease will come to an end and a lease renewal with a revised rental can be agreed. If you do not wish to grant the Tenant a new lease, then you can object to the granting of a lease renewal on certain grounds, which we can advise upon and these grounds will have to be stated in the Section 25 Notice.
