Rent Review and Lease Renewal: Session 1
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.
Module Duration: 2 hours 50 minutes
Date Recorded: 20/09/2023
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?
- 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'