Commercial Lease Renewals can be even more contentious than Rent Reviews, since in this case the Tenant has the chance of walking away from the premises. Rent and other terms are determined via the Courts rather than an Arbitrator, although we always advise on alternative dispute resolution.
Timing is paramount since the rental value is based on the date of the Court hearing as opposed to the lease expiry date, and in a rising market the Landlord should delay whereas the Tenant should act proactively and vice versa in a falling market.
Unlike a Rent Review, there are a host of issues which need to be negotiated, such as term, break clauses, and covenants of the lease to name but a few.
- Rent paid
- Term of lease
- Break dates
- Lease covenants
- Rent free periods
- Redevelopment clauses
- Inside or outside the Landlord and Tenant Act 1954
- Ongoing dilapidations liabilities
A full understanding of case law associated with the Landlord and Tenant Act 1954 and the Arbitration Act 1996 is essential. We advise on the tactics to be adopted on serving notices and counter notices in conjunction with the Clients’ lawyer, and solve disputes to ensure that our Clients gain the upper hand, whether by negotiation or litigation procedure.
We enjoy substantial experience in contested Lease Renewals, where a Tenant wishes to renew and the Landlord is refusing a new lease. In some cases, the Landlord may offer a renewal, and the Tenant may vacate, leading to end of term Dilapidations claims.
If you need help, it is time to contact The Lorenz Consultancy. We have a proven track record in this complex field, working for both Landlords and Tenants, and offer a thoroughly researched approach, supported by an extensive database of rental evidence.