Case Study - Lease Renewal
Peter Wilson – Partner Kirkby & Diamond
The clients are a tenant of a modern industrial unit on an industrial estate on the edge of an established market town. The lease was due to terminate some 12 months ahead. Rental values had fallen since the start of the existing lease.
As rental levels had fallen, there was a possibility that the landlord would delay serving a formal notice to terminate the lease in the hope that the tenant, if not advised, would allow the existing lease to continue at the existing rent.
The client was recommended to initiate the lease renewal process himself under the Landlord and Tenant Act (1954) in order to bring the Landlord to the negotiating table to ensure that a new, lower rent would become payable at the earliest possible date.
Taking into account the reduction in rental levels and all relevant comparable evidence, a renewal of the lease was successfully negotiated with a rent that was some 30% below the rent passing under the old lease.