For commercial surveyors, knowing the market you work within and having good relationships with other surveyors is just as important as knowing about the 1954 Landlord and Tenant Act and your client’s rights under it. Trying to gauge an understanding of rental trends and demand for a location you are unfamiliar with can often lead to inaccuracies and poor advise being given to the party being represented.
Commercial Lease Renewal Case Study – Using Local Market Evidence to Achieve a 50% Rent Increase
Vickery Holman’s Lease Advisory team were instructed to act for a landlord client on a lease renewal following the service of a non-hostile Section 25 Notice by their solicitor. The long-standing tenant occupied an unusual industrial premises in Cornwall and had instructed an experienced surveyor, albeit one who was not local to the area. This became apparent as negotiations around an appropriate rental level grew increasingly contentious; the tenant’s surveyor claimed there was no evidence to support an increase to the passing rent whilst we were able to present clear market evidence which supported a substantial increase.
The team are well versed in acting on contentious matters and can confidently and competently take instructions to Third Party. In this case, the renewal progressed to the setting of a Court date, where we worked closely alongside our client’s litigators and transactional solicitors whilst simultaneously continuing to seek an amicable resolution through negotiation.
The renewal was eventually settled prior to the Court date with an agreed 50% increase to the passing rent and the tenant’s surveyor acknowledging that our local evidence was indeed relevant.
Our confidence in the evidence we gather reflects the presence we have in the commercial market through the lettings our Agency team carry out, the rent reviews and lease renewals we act on and the relationships we maintain with surveyors in other firms.
With offices in Cornwall, Exeter, Bristol and Plymouth, Vickery Holman’s Lease Advisory team have a wealth of local knowledge to assist in any matters that may require Dispute Resolution assistance.
