Rental growth is coming back and so are rent
reviews — make sure you are prepared!
In the last 8 years the property market has changed in a way that nobody could have predicted. As a result, rental growth once taken for granted became rarely seen and rent reviews passed without comment.
Now rental growth is back, and with it, the focus comes back on the rent review clause for Landlords and Tenants. Whilst the market does hold a heavy influence over a rent review, it is the terms of the rent review clause that really governs what happens.
Our Rent Review team comprises specialists who are experts in unravelling the often complicated terminology in rent review clauses and determining their effects upon value.
For further information and to find out if we can help you contact one of the team below.
Ground leases are a common feature within the commercial property market where landlords have historically sought to retain an element of control and income on land. However ground leases often tend to be poorly drafted with wording that is unclear and ambiguous at best!
The wording and interpretation of the ground leases are key when it comes to rent review and determining the revised rent payable. The frequency of rent reviews can often be as far apart as 50 years, therefore the implications for rental growth are significant.
The length of unexpired term on a ground lease is also key to the capital value of the property and we are regularly undertaking negotiations with landlords to regear the lease terms to provide for a longer term and an increase in capital value.
A well advised tenant will have a full understanding of the rent review clause and our team of experts at FHP are experienced in acting for tenants in rent reviews, ensuring that any increase in rent or extensions are in line with market value.
For information on how we can assist you please contact one of the team below.