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 also advise on alternative dispute resolution as an alternative to Court.
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.
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 client's solicitor, 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.
The Lorenz Consultancy has a proven track record in this complex field, working for both Landlords and Tenants offering a highly professional, and thoroughly researched approach, supported by an extensive database of rental evidence.