Most leases of office premises contain upward only rent reviews if the contractual term of the lease is greater than 5 years. With our expert knowledge, we can advise you on achieving the lowest possible settlement on rent reviews.
If you have a lease expiry and wish to remain in your offices, it will be necessary to renew the lease.
If your lease is a Business Tenancy, it will enjoy the protection of the Landlord & Tenant Act which gives you specific rights. In a weak market, most landlords will want you to renew the lease if they do not want to refurbish or redevelop. A Lease renewal, in such circumstances, allows you to renew within reason for a contractual term which suits your business needs. Strategically, this may allow you to make your choice of the term of lease you require even if short (say 12-18 months) and on expiry of the renewal lease to similarly renew it for a term which fits your business needs.
Lease renewals have the advantage in that they are at market rent which means that they can be higher or lower than the rent which you previously paid. This allows you to avoid the position of upward only rent reviews.
It may also, in a weak market, allow you to amend the terms of the new lease, for example, to introduce a capped service charge or other incentives such a rent free period or a capital payment.
Spring4 can advise you on all interrelated aspects of a lease renewal.
Spring4 can advise you on the acquisition of new premises to help you minimise risk and cost.
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Many leases contain break clauses. Often the break clause is at the same date or close to the date of a rent review. In the current market, many landlords will be reluctant to see a tenant terminate a lease by exercising a break clause because the landlord will then face a potential void and a loss of income. If the premises are over-rented and the market is weak, it will mean a new letting at a lower rent.
This gives the tenant substantial leverage in a weak market to be able to restructure an existing lease, for example by reducing the rent or limiting an increase, obtaining incentives and possibly shortening the contractual term of a lease.
Spring4 have substantial experience in this area and can advise you on the approach and negotiations to achieve this.
Business rates form a substantial part of total property costs and commonly can be 40-50% of the rent. Spring4 can advise you on the appeal of your rating assessment.
In most cases, tenants have liabilities on expiry of their leases, whether they end on expiry of the lease or by the tenant exercising a break clause.
Spring4 can provide you with detailed strategic advice on how best to minimise your end of lease liabilities and assist you either in procuring the necessary works or in the negotiation of a settlement with the landlord (see link to ending a lease).
Once the fitting out has been completed, the move then takes place and we can advise you on the moving process if required.
Whenever new premises are acquired, it is usually necessary to fit out and equip the premises to adapt them for your specific business needs.
Spring4 can assist you in specifying such works and procuring them at minimum reasonable cost.
In some cases, particularly on second hand or unrefurbished premises, it may be possible to limit your end of lease liabilities by reference to a Schedule of Condition which records largely photographically the state and condition of the premises when acquired. Getting the Schedule of Condition right is paramount to mitigating your liability. Spring4 can prepare Schedules for you.
