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. It will survey the range of procedures, with particular reference to the increasingly well-used PACT scheme. This course is intended for surveyors, investors, occupiers and all those involved in rent review and lease renewal negotiations or commercial property management generally.
| Start Date | Venue | Price | |
|---|---|---|---|
| 20 April 2023 | 2 Virtual Seminars (20 April & 26 April 2023) |
Note: All prices are to be paid in GBP and are subject to VAT at the prevailing rate
Rating Review and Lease Renewal will take place on the following days:
- Session 1: Thursday 20 April 2023
- Session 2: Wednesday 26 April 2023
Download and print your full course brochure here
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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.
Speaker
- Mark Shelton, Commercial Property Management Law Trainer, CPM Law Training Limited and Author of 'A Practical Guide to the Law of Dilapidations' and 'A Practical Guide to Applications for Landlords' Consent and Variation of Leases'
Programme
SESSION 1 - THURSDAY 20 APRIL 2023
Welcome and Introduction
Rent Review - In Context
- Why make rent variable?
- Turnover rents, geared leases and index-linked rents
- Open Market Value rent review
- Components of a rent review clause
Lease Renewal - Overview and Renewal Terms
- Overview of Landlord and Tenant Act 1954 and renewal procedure
- What property?
- What length of term?
- What other terms?
- Recent caselaw
Valuation - Similarities and Differences
- Hypothetical lease
- Assumptions and disregards
- Statutory basis for rent assessment in lease renewals
- The 21 year rule
Expert v Arbitrator
- The key differences
- What if they under-perform?
- Can their decision be appealed or challenged?
- Which is appropriate for a specific review?
SESSION 2 - WEDNESDAY 26 APRIL 2023
Welcome and Introduction
Lease Renewal - The PACT Scheme
- Rationale and history
- How does it work?
- Why should I opt for PACT?
- Practical tips and issues
Lease Renewal - in the First-Tier Tribunal
- Why transfer to first-tier tribunal?
- What is the procedure?
- What is the experience of the scheme to date?
Some Practical Rent Review and Lease Renewal Issues
- Time limits, notices and counter notices
- The hierarchy of evidence
- Analysing, presenting and challenging comparables
- Fees, costs and Calderbanks