Rent Review and Lease Renewal
The course will give an overview of the two procedures, and look at recurrent issues such as whether the hypothetical lease should include a break option, what should be the assumed length of term, and whether a ‘headline rent’ is effectively excluded. The course will survey the range of procedures, with particular reference to the increasingly well-used PACT scheme.
|18 October 2017||Strand Palace Hotel, London|
Note: All prices are subject to VAT at the prevailing rate
By the end of the course you will be able to:
- Place the rent review process in the context of other variable rent mechanisms
- Appreciate the similarities and differences between the valuations carried out in rent reviews and in the lease renewal process
- Understand the choices of dispute resolution mechanism in both lease renewals and rent reviews
- Recognise the pitfalls of rent review notices and counter notices
- Evaluate the worth of evidence of comparable transactions
Does rent review have any relevance in a world of five-year lease terms? Longer terms remain prevalent in the leisure and industrial sectors, to name but two, and there are still plenty of longer leases around. Commercial rents are once more on the rise, and there can be few topics of more vital importance for both landlords and tenants than the amount of the rent.
At the same time, tenants continue to renew their leases under the Landlord and Tenant Act 1954, requiring application of the skill of open market rental valuation in a different context. It would be easy to assume that arriving at the rent in either type of procedure would be the same exercise, but there are important differences of process and valuation. Simply trying to export the approach used in one to the other is a recipe for disaster.
This course is intended for surveyors, investors, occupiers and all those involved in rent review and lease renewal negotiations or commercial property management generally.
- Mark Shelton, Commercial Property Management Law Trainer, CPM Law Training Limited and Author of The Lease Guide website
Rent review – in context
Lease renewal – overview and renewal terms
Valuation – similarities and differences
Expert v Arbitrator
Lease renewal - the PACT scheme
Some practical rent review issues