Agreeing the terms of a new lease and the rent for the property may sound straightforward enough, particularly if a similar property nearby has recently let in the open market, but in reality there is much more to consider and negotiating the successful outcome to a lease renewal is more complex.
The negotiations, and tactics to be adopted, are even more important in difficult market conditions.
For various reasons the tenant may not wish to renew or the landlord may even oppose the granting of a new lease but each must consider their position and their requirements well in advance, even up to 12 months before the expiry of the existing lease.
There are numerous points to be considered by landlords and tenants such as the extent of the property to be included within the lease, the length of lease, frequency of rent reviews, repairing obligations, inclusion of break clauses for either or both parties, and much more. The terms of the new lease also depend upon the terms of the existing lease which can have a significant affect upon value. Bowyer Bryce were able to negotiate a significant reduction in rent by insisting that a particularly restrictive use clause in the expired lease, that the tenant wanted to keep, be included in the new lease
We specialise in industrial/warehouse, office and retail property and our qualified professional surveyors have expert knowledge of these markets, supported by an extensive database of transactions. We also have detailed knowledge of landlord & tenant legislation and rent review case law that is essential for analysing and properly interpreting market transactions and applying this experience to achieve the best results for our client, whether as a landlord or as a tenant.
If the terms of the new lease cannot be agreed they are determined by the Court or by an Arbitrator (through PACT). Our qualified surveyors frequently prepare Expert Reports for submission to Courts and Arbitrators in connection with lease renewal proceedings.
Depending upon the existing rent and market conditions, either party may wish to instigate renewal proceedings as early as possible or not at all. Our professional qualified surveyors can advise you of the options available and the best strategy to suit your circumstances and requirements and guide you through the lease renewal process.
Landlords and tenants should seek advice at an early stage, well before the lease expiry date, as thorough preparation is key to a successful strategy and result.