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 how rent-free periods are taken into account in valuation. It will survey the dispute resolution options, with particular reference to the increasingly well-used PACT scheme, and consider what changes might usefully be made in the Law Commission’s current review of the 1954 Act. 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 38 minutes

Date Recorded: 03/10/2024

Areas covered

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
• Treatment of rent-free periods

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'