10 September 2010 by

Rent, boy, o-boy!

‘Rent’ may be considered as a simple term but there are many types of rent payable under a lease, in fact rent need not be payable at all for the letting to be a lease, but I digress, and as a landlord or a tenant you need to consider the implications of the rent that you select.

Concise definitions of the more common types of rent payable under a commercial lease are as follows:

Ground Rent: This means a low or nominal rent usually paid under a long lease in return for a premium. Often the ground rent is simply a convenient figure which has no bearing on the value of the land.

Peppercorn Rent: A token or nominal rent, which actually means what it says!

Rack rent: Usually means the same as a market rent.

Best rent: Depending upon the context in which it is used, this can mean a rent greater than market or rack rent. This is particularly relevant upon a review of the rent.

RPI rent: A rent which increases in line with the retail prices index. This is usually revalued yearly but another period may be used.

Side by Side or Geared rent: These are sometimes seen in a joint venture where the head landlord, often a local authority, lets land to a developer or investor which then develops and underlets the land. The head landlord will typically receive a basic ground rent and a share of the income from the underleases.

Turnover rent: Is normally based on the tenant’s turnover at the premises, usually expressed as a percentage of turnover. These are common in the retail sector. There are compliance burdens from a Stamp Duty Land Tax viewpoint, potentially extra duty to be paid and special accounts may need to be prepared.

So there you have it, the everyday derivations from the plain old rent. Now, as for the calculation of rent upon review……perhaps best left for another e news!

3 September 2010 by Sarah Davies

EPC ……………… Excellent Plan or Totally pointless?

Home Information Packs (HIPs) were introduced by the last Government with the aim of making the process of selling your home much quicker. They were designed to provide a ready source of information on a property for a potential buyer and had to be arranged and paid for by the seller before marketing the property.

3 September 2010 by Sonal Ghelani

Certainty in respect of Public Rights of Way

The Countryside Rights of Way Act 2000 (CROW), which is only applicable to England and Wales, received Royal Assent on 30 November 2000. The Act, amongst other things, improves the rights of way legislation.

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