Lease Renewals
Agreeing the terms of a new lease and the rent for the property
may sound straightforward enough, particularly if a similar
property nearby has recently let in the open market, but in
reality there is much more to consider and negotiating the
successful outcome to a lease renewal is more complex.
For various reasons the tenant may not wish to renew or the
landlord may even oppose the granting of a new lease but each
must consider their position and their requirements well in
advance, even up to 12 months before the expiry of the existing
lease.
There are numerous points to be considered by landlords and
tenants such as the extent of the property to be included
within the lease, the length of lease, frequency of rent reviews,
repairing obligations, inclusion of break clauses for either
or both parties, and much more. The terms of the lease can
depend upon the terms of the existing lease and can also have
a significant affect upon value.
Bowyer Bryce specialise in industrial/warehouse, office and
retail property and our qualified professional surveyors have
expert knowledge of these markets, supported by an extensive
database of transactions. We also have detailed knowledge
of landlord & tenant legislation and rent review case
law that is essential for analysing and properly interpreting
market transactions and applying this experience to achieve
the best results for our client, whether as a landlord or
as a tenant.
If the terms of the new lease cannot be agreed they are determined
by the Court or by an Arbitrator (through PACT). Our qualified
surveyors frequently prepare Expert Reports for submission
to Courts and Arbitrators in connection with lease renewal
proceedings.
Depending upon the existing rent and market conditions, either
party may wish to instigate renewal proceedings as early as
possible or not at all. Our professional qualified surveyors
can advise you of the options available and the best strategy
to suit your circumstances and requirements and guide you
through the lease renewal process.
Landlords and tenants should seek advice at an early stage,
well before the lease expiry date, as thorough preparation
is key to a successful strategy and result.
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