Lease Renewal

Often a more delicate process than the rent review as the tenant has no obligation to stay.  Our advice focuses around the strategic time for serving of notices and counter notices before entering the negotiating process.  An intimate knowledge of the Landlord & Tenant Act renewal procedure is second nature to the team.  The best outcome at lease renewal is achieved through a synergy of valuation and legal expertise: we work as a team with our client’s solicitors.

Case Study

Barclays Bank, Fawcett Street, Sunderland

Acting on behalf of a private landlord client, we secured a new 15 year lease without break from Barclays.  This was against a background of banks taking leases taking five year leases in the uncertain financial environment of the recession.

Although the client had to concede an initial incentive, the long unbroken term to a blue chip covenant enabled the client to succeed in its primary objective – a sale at the highest possible price.

Lease renewal negotiations often require a different approach compared to rent reviews as the tenant is able to walk away.  Our advice in this case focussed on achieving the delicate balance between pushing for the best possible settlement whilst always being conscious of the strength of the tenant’s position in a poor market. Careful management of the subsequent legal process enabled us to fully satisfy the client’s wider investment objectives.