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Lease Renewals & Rent Reviews
Landlord & TenantThe framework for the valuation of premises for Lease Renewals and Rent Reviews is usually laid down in the lease and generally governed by statute.
Interesting points to note:
Most modern leases provide for a clause, which only allows for rents to be increased at Rent Review. However subject to the evidence available, rents can be reduced at Lease Renewal.
Tenants generally have statutory protection at the end of their leases and therefore may be entitled to a new lease.
There are circumstances where a landlord may take back possession at the end of a lease, however, the tenant may be entitled to compensation at 1 or 2 times the Rateable Value, depending an the length of occupation.
Notices can be served by either the Landlord or Tenant at the end of a lease, or by the landlord to trigger a Rent Review. The timetable can be very strict and should be adhered to or a loss of rights could be incurred.
Disputes and differences are generally resolved by Negotiation or Determined by An Independent Expert or an Arbitrator.
Richard John Clarke Chartered Surveyors pride themselves in their negotiation skills but are experienced in providing evidence for either an Independent Expert or an Arbitrator.
Richard John Clarke provides a professional service based either upon the financial gains to our clients or on a flat fee basis.
Schedules Of ConditionRichard John Clarke Chartered Surveyors provide Schedules of Condition which are agreed at the outset of a lease between the Landlord and Tenant so that the tenant only has to keep the property in the condition as evidenced by that schedule.
Unless expressly stated in the Heads of Terms, tenants should only be obliged to give the premises back at the end of the lease in the same condition as they were in at its grant.
These Schedules include detailed descriptions of the repair of each area of the property together with photographic evidence.
Schedules of DilapidationsA Landlord can serve a schedule of dilapidations at any time during the lease term (as well as for a while afterwards), itemising repairs works required so as to ensure compliance with the repairing covenant.
However unless expressly stated in the Heads of Terms, tenants should only be obliged to give the premises back at the end of the lease in the same condition as they were in at its grant.
There is generally much argument and case law concerning the repairing obligations and subsequent Dilapidation claims and Counter claims.
It should be borne in mind that the cost of compliance with a schedule cannot exceed the sum representing the decrease in value of the landlord’s interest. However, this limitation does not apply for instance, to the costs associated with the reinstatement of the property at the end of the lease(by the removal of tenant’s fixtures and fittings and alterations) and general redecoration.
Richard John Clarke Chartered Surveyors can provide Schedule of Dilapidations and negotiate resolutions to any disputes where possible.
Landlord and Tenant AdviceFor a free no obligation consultation, please call Richard Murphy, our Landlord and Tenant Expert on 020 8505 2065 or email firstname.lastname@example.org.
Richard John Clarke - Chartered Surveyors