A PROBLEM SHARED….
For commercial landlords and tenants alike, lease expiry can be a contentious time that presents a number of difficulties. Where the parties seek a renewal lease, negotiations are likely to become increasingly protracted as both sides are less willing to compromise in what is currently a challenging market. Unlike a rent review, which focuses solely on ascertaining the correct rent for commercial property, there are a host of other issues which need to be negotiated at lease renewal. These include:-
•The length of the term
• Break clauses
• Rights to assign or sublet
• Rent free periods
• Security of tenure
• Capital contributions
The cost for a tenant of moving to different premises and the potential disruption to business that this move may cause are factors that can influence tenants to agree to a new lease on terms that could be bettered.
For landlords, the spectre of potential void periods and the ensuing business rate liability can also encourage the offer of more favourable terms than those commonly agreed in the local market.
These factors highlight for both parties the importance of obtaining clear, reasoned advice throughout the lease renewal process.
BNE has considerable experience in acting for a range of commercial landlords and tenants throughout the North Northamptonshire area, which enables to us to provide a detailed insight into the local market and ultimately obtain the best possible outcome for our clients. The majority of commercial leases are protected by the Landlord and Tenant Act 1954, which gives security of tenure rights to tenants, but also gives landlords the right to deny tenants new leases on specified grounds.
BNE’s thorough knowledge of the appropriate legislation and the case law that has evolved around it will help to ensure that your property’s interests are protected.
Despite uncertainties in the commercial property market arising from the financial and banking crisis in the past four years, most lease renewals can still be settled by agreement between the parties.
If however your case is more contentious it will be referred to the appropriate court or a jointly agreed Expert / Arbitrator.
As a company we have considerable experience of advising both landlords and tenants as to the potential risks, rewards and associated costs involved in pursuing a case to court or to third party determination. This has enabled our clients to make an informed decision in the light of the likely outcome and cost of proceedings.
For those matters that are pursued, BNE have liaised closely with our clients legal advisors to ensure smooth progress of the case. We have provided clear, concise and objective Expert Witness statements and ensured that cases are fully understood the Judges, Experts or Arbitrators prior to making a decision on the matter.
For further advice on how we can support your organisation with your next lease renewal please contact Paul Campbell at BNE on 01536 517777 or email email@example.com