LEASE RENEWALS – WHICH WAY NOW?
In hindsight, the nation’s optimism that the Country would return to some form of normality during the Autumn was somewhat optimistic and we continue to adapt to the changes being imposed due to the pandemic.
With the acceptance that this situation is unlikely to change at any time soon, this places more scrutiny upon decisions when approaching the end of a lease. A landlord’s position is generally, albeit not always, to keep the tenant in situ on a new lease for as long as possible and at the best rent given the market evidence. On the other hand, tenants may seek more flexibility and wish to minimise costs.
The outcome will depend upon the strength of the market in that particular sector, supply, demand, rental levels and the negotiation stance between the parties. With proper representation the vast majority of lease renewals are agreed amicably and in addition to existing statutory Landlord and Tenant Act measures, the Government have published a Code of Practice for Commercial Property Relationships during the Covid-19 pandemic. The RICS also have introduced additional commentary and facilities, including online mediation services.
Tim Richardson from FHP Property Consultants comments:
“Whilst some businesses continue to do well, there is no doubt that planning space requirements and making forward commitments is difficult. Equally, landlords are running their own businesses, and will have commitments and liabilities to meet. Using a chartered surveyor can often be the best way of reconciling the two objectives and achieving an outcome that suits all.”
For further information please contact Tim Richardson BSc MRICS at FHP Property Consultants on 01332 224 857 or email firstname.lastname@example.org.