Rent Reviews

We discuss each client’s property holdings strategy, often renegotiating lease terms during the rent review process. This can secure the most favourable rental settlement, provide flexibility or greater security of tenure for occupiers, or maximise value for landlords. A similar approach is adopted when considering lease renewals, appraising every option well in advance of the contractual expiry.

Our detailed knowledge of the market, lease provisions, procedures and case law, ensures that our clients receive the best possible advice in every case.

Lease Renewals

Leases due to expire require full consideration by both landlord and tenant, well ahead of the relevant date. For landlords, this may offer an opportunity to redevelop or secure a new letting at a higher value. From a tenant’s perspective, it may open up the opportunity of moving to larger or smaller premises, or simply staying put. The importance of serving notices at the appropriate time cannot be overstated.

It is particularly important for tenants of commercial property in Scotland, to appraise an impending expiry of lease at the earliest opportunity, as they do not enjoy security of tenure (save as limited protection in terms of the Tenancy of Shops (Scotland) Act 1949). If the matter is not fully considered well in advance of the expiry date, tenants can find themselves paying significantly more rent, committing to lease terms which they would normally avoid or find themselves without a property to occupy and a significant claim for dilapidations. To avoid these potential pitfalls, every business in a leased property should have a strategy mapped out ahead of expiry.

Arbitration

Where rent reviews cannot be resolved by agreement, the lease usually provides a mechanism for determination by an arbiter or independent expert. We are fully conversant with the procedures and regularly prepare representations on behalf of clients in such cases.  This often involves attendance at hearings, which may be called as part of the proceedings.

Our directors are also called upon to act as arbitrators/experts in rent review disputes involving third parties.