Rent Review & Lease Renewal
Rayners Commercial are a firm of Chartered Surveyors and members of the RICS with a long track record in negotiating excellent results for both landlords and tenants at rent review and lease renewal. We appreciate how important it is for landlords to maximise returns from their property investments and for tenants to limit one of their most significant outgoings.
Due to the importance of tactics and the timing of notices for both rent reviews and lease renewals, we would strongly recommend that a Chartered Surveyor is engaged at an early stage, ideally six or nine months prior to a rent review and eighteen months prior to a lease renewal.
We act for a wide range of landlords and tenants from major PLC’s to individuals throughout the Country, although our primary area of operation is London and the South East. We act for a number property company landlords as well as national retailers including Thomas Cook, Papa John’s, Austin Reed, Country Casuals and HSBC.
We handle reviews and renewals on most types of commercial premises including high street shops, out of town retail, offices, industrial, pubs, restaurants and leisure premises.
Our market knowledge and expertise, many years experience, access to extensive comparable evidence databases and contacts combine to ensure that we achieve the very best possible outcome for our clients.
In the case of rent reviews, our service would typically include an initial inspection and measurement of the premises, consideration of the lease and any other documentation, research into relevant and recent comparable evidence, advice in relation to serving or dealing with rent review notices, general tactics, negotiations and correct documentation of the review following settlement.
There are many factors which need to be taken into account at rent review such as prevailing market conditions as at the date of the review, location, the shape and physical nature of the premises, case law and tenant’s improvements. In addition, one of the most critical factors is the wording of the lease, since there are a number of clauses which can have a significant impact upon the level of rent determined.
In the unlikely event that that a negotiated rent review settlement cannot be reached, then we will advise in relation to the costs and risks associated with a referral to a third party Expert or Arbitrator. Indeed, we have an excellent track record in representing both landlords and tenants at third party and will advise throughout on tactics and how to protect our client’s costs position.
In the case of lease renewal, there were a number of changes made to the Landlord & Tenant Act 1954 on 1 June 2004 which has made it more important than ever for landlords and tenants to carefully consider the timing of their notices and interim rent applications. We will guide you through this process and provide tactical advice in relation to service of Landlord & Tenant Act notices.
Again in the unlikely event that a negotiated agreement cannot be reached, we are experienced in acting as Expert Witness in either Court or PACT (Professional Arbitration on Court Terms) proceedings. In many cases PACT can offer a quick, efficient and cost effective solution to commercial lease renewal disputes without the need to go to Court.