Background
- Wignalls instructed on 2 events - 2020 rent review & 2025 Lease Renewal.
- Wignalls acting on behalf of the Trust (Tenant).
- Landlord had appointed representation
- Instructions were to minimise the rent as much as possible, mitigating the Trust liability.
Key data:
- Lease: 10 years with effect 2015
- Savings for 2020 rent review: £15,000pa and £75,000 back rent over the last 5 years
- Savings for the 2024 Lease Renewal: £350,000 over the term of the new lease.
- 2020 Rent Review 2025 Lease Renewal Passing
Key points
- Hypothetical term at review of 10 years to be applied
- 2020 Rent Review – landlord unwilling to agree NIL increase at review with Market Rent at renewal.
- Agents initially proposed £230psm equating to an 101.2%
- 2025 Lease Renewal – Agents proposed £270psm equating to an increase of 143%
Settlement
- Negotiations concluded and comparable evidence discussed
- 2020 Rent Review provisionally agreed at £215psm (Landlords offer £230psm)
- Lease Renewal provisionally agreed at £228psm (Landlords Offer £270)
- 2020 review – negotiations provided a saving of £15,000 per annum or £75,000 of “back rent” over the last 5 years up to the end of the lease.
- 2024 Lease Renewal – terms agreed. Providing a saving of £350,000 over the term of the new lease.
