11 September 2015 by

Rent review timing: how important is it?

At last, we appear to be moving out of the post-crash depression, so this is a good time to consider what effect this may have in the commercial leasehold market, and in particular, on the timing of rent reviews.

Both landlords and tenants should have an interest in this. Landlords – are you losing money? Tenants, are you exposed to a potential liability?

In modern commercial leases, time is not, usually, of the essence, but this does depend on the wording of the relevant lease.

In a case in 2009, the High Court held that a 13 year delay did not prevent the landlord from invoking the rent review provisions. The terms allowed for a 50 year lease with a rent review to be conducted after 25 years. Despite no rent review being invoked straight after the 25th year, the landlord appointed an arbitrator 13 years later, and a new rent was determined.

In that instance, the landlord demanded, and recovered, full back rent for the whole 13 year period, which was quite a significant sum. Interest could also have been payable on this amount.

Whether a tenant can do anything to avoid being caught in such a situation will largely depend on the terms of the lease and, more specifically, on the wording of the rent review clause.

If you would like to discuss the rent review provisions in your lease, or any other issue raised in this email, please contact us on 0207 288 4700 email us on info@boltburdon.co.uk

28 August 2015 by

Vacant Possession, What does it mean?

As a rule, when selling a property, the contract for sale will contain a condition which states the seller will […]

1 September 2015 by

The Afterlife Management Tool or What Happens to Your Facebook Account after You Die?

We live in a time when the use of modern technology is not only a way to keep ourselves up-to-date […]

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