When to Instruct a Chartered Surveyor: Valuations, Lease Renewals & Property Disputes
The importance of taking professional advice
Whilst it has always been an issue, we have recently seen an increase in instructions where clients have initially engaged in negotiations themselves, likely with a view to reducing professional fees or them thinking it is more straight forward than it actually is. Understanding when to instruct a chartered surveyor can save a lot of time, stress and money.
When clients try to manage matters themselves, this can lead to problems they cannot resolve due to complications in relation to more technical valuations or lease interpretation, such as not understanding zoning of retail premises and restrictive covenants. At this point we will be instructed to take over negotiations where we are often starting on the ‘back foot’. Unfortunately, this can lead to higher professional fees where increased time is taken to conclude matters or less favourable results in some instances than if we had been instructed from the beginning.
Likewise we have recently had a case where a Landlord did not understand their Tenant had security of tenure. Most business tenants automatically have the right to renew under the Landlord & Tenant 1954 Act on reasonable terms, unless, before any lease is granted, they agree with their landlord that the right to renew should not apply. In order to do that, parties must agree to ‘contract’ out’ of sections 24 – 28 of the Act thus removing the right to renew. This requires both parties to sign a statutory declaration, which is then attached as an addendum to the lease. No such addendum was attached to the subject lease and the Landlord was trying to propose a renewal at a rent in excess of Market levels (ie not reasonable terms). Our Lease Advisory team were able to act for the tenant, explaining their rights and the lease renewal process, and undertake negotiations with the Landlord in respect of the new rent with market evidence and clear detailed analysis.
We have also recently advised a novice Landlord on service charges, where a long leasehold tenant was trying to force them to undertake works which they said were the Landlord’s responsibility. However, having carefully reviewed the lease our Property Management team were able to advise on who was liable for what, and our Building Surveying team prepared a schedule of works for only those which were the Landlord’s responsibility; they then project managed these to completion.
We are always happy to have an initial chat, and therefore our recommendation would be to give us a quick call in the first instance to see if we are able to help – be that in relation to Lease Advisory, Building Surveying, Business Rates, Property Management or Valuation matters.
We are based across the South West with offices in Truro, Plymouth Exeter and Bristol with 79 staff, 34 of who are Chartered Surveyors, with 22 of these being a Registered Valuer. In addition should matters get contentious, we have a Dispute Resolution team, led by Jane Falkner.
