A rent review is the review of the previous rent paid for occupying a property that you do not own, subject to any inflation or property value increase. Many commercial lease contracts will have clauses explaining that rent is subject to upwards only rent reviews, every certain amount of years. These clauses were first implemented to combat inflation. A rent review memorandum is a document used by both parties to illustrate the official review. This document will outline the rent agreement between the parties.
Large leasehold properties will receive a commercial rent review every 3 to 5 years. If the landlord bases their rent increase on open market rental value, you may be able to negotiate that the value of the houses being compared against are often simply increased for marketing purposes and that upon their purchase, the actual buyer is not paying such high fees. Furthermore, the fees can be lower where the buyer is to receive incentives. Therefore, the open market value becomes difficult to calculate and offers much room for negotiation.
If you require further advice on commercial rent reviews, please contact our specialist team at Bloomsbury Law. We have years of experience and look forward to your call. It will be our pleasure to answer any queries you may have and also advise you accordingly.
What do I do next?
Contact us online or speak to one of our experienced property lawyers on 0207 998 7777 for a free initial consultation. With our vast experience in the field, our team will work with you to ensure this process runs as smooth as possible. All information you provide us with is treated with the utmost confidentiality.
We will contact you no later than the next working day to arrange a meeting at our offices in London W1 to advise on the agreement.