10.2 Rent Review Flashcards
Why is it not in T’s interest for independent valuer to consider the ‘best rent’
Can consider T’s w/ special interest
What happens if parties cannot agree revised rent
An independent person will do it, as set out in the lease
Why must RR dates in original lease be by ref to anniversaries
So hypothetical lease also has regular RR
What will L want the independent person to consider on RR
The best rent
What assumption is not in T’s best interest
Any ref to assuming L has performed all Os
Three ways to carry out RR
Open market, turnover and index linked
What disregard is in T’s best interest
Taking account of any improvements made by T voluntarily - avoids double payment
Why might it be beneficial to T at RR to have a restrictive lease
Less attractive so depresses rent
Two kinds of leases
FRI and long
What happens pending agreement on the new rent
T pays old rent, then makes up for shortfall + interest when decided
What does L usually specify about RR
Only goes up
What does The Code say about the trajectory of RR
Should go up and down
What kind of lease does have capital value and why
Long - no market rent paid
How is the new agreed rent documented
In RR Memo signed by all parties (inc. guarantors)
Why resist paying interest on shortfall once rent decided above base rate?
Not paying due to default
