Most leases of more than four or five years will contain provisions for review of the rent to open market rental value at regular intervals. A large body of case law has grown up over the last forty years as landlords and tenants have struggled with the interpretation of the drafting of rent review clauses. Fortunately not all rent reviews involve difficulty with interpretation and most depend on an assessment of market rent by comparison with the letting of similar property in the neighbourhood.
We act for either landlord or tenant to obtain the very best settlement we can for our client.
It is worth approaching a rent review in plenty of time to check the terms of the lease in detail. Occasionally the review clause will contain a particular timetable that has to be complied with. Evidence of the market place and comparables are best gathered at the time of the review. Tactics can be employed to bring forward review negotiation or defer it if that may lead to advantage.
In the majority of cases we will negotiate a settlement, but occasionally agreement cannot be reached and the dispute has to be referred to a third party for determination. This person will either act as an independent expert or arbitrator. We have experience of preparing expert evidence for the arbitrator or expert and also the negotiating skills and advocacy that are necessary to deal effectively with these situations.
Our fees are usually based on a percentage of the new rent or an hourly rate. VAT at the standard rate is payable on all our fees and commissions.
We can act as expert witness or as advocate on behalf of landlord or tenant clients.