Rent Review and Lease Renewal - Session 1
The course will give an overview of 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 look with particular reference to the increasingly well-used PACT scheme. This event will run as two virtual sessions of approximately three hours in length and will include comfort breaks.
Module Duration: 2 hours 56 minutes
Welcome and Introduction
Rent Review - In Context
- Why make rent variable?
- Turnover rents, geared leases and index-linked rents
- OMV 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?
Valuation – Similarities and Differences
- Hypothetical lease
- Assumptions and disregards
- Statutory basis for rent assessment in lease renewals
- The 21 year rule
- 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'