Leasing & Letting - L3 - Oct 2023 Flashcards
How did your client proceed on Meridian Water following you’re advice?
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How did you come to an agreement with the tenant when they wanted a 99 year lease?
The tenant wanted a longer term due to the nature of what they wanted to do and long term plan. I advised my client that due to its potential operational need in the future, a contracted out lease would be most appropriate. The tenant wanted some security at least for the first 5 years for funding purposes so I advised my client that no break for the first 5 years could be offered.
What alternative options did you consider for your client?
I considered an inside the act lease but this would not have given my client the flexibility it needed for potential operational need.
I considered a shorter term for the contracted out agreement but this would not have satisfied the need of the tenant.
Why did you advise 5 years then rolling was a suitable mutual break?
I advised on no break until the 5th year to give the tenant the certainty they needed for the first 5 years for funding purposes. My clinet did not have any forseeable plans for the site for the next 5 years but this may change in the longer term.
Talk me through the reasoned advice you provided to the client on 439 Wanstead.
In regard to 439 at Wanstead I advised my client that following the refurbishment of this unit along with others along this row that a change of user type would benefit the difference in tenent mix that was acheivable at this location which would also increase the value. I marketed the property, arranged viewings and advised my client on the selection of the most suitable tenant.
What advice did you give your client regarding the change of use requirement?
In regard to the change of use I advised my client to give approval for the incoming tenant to seek the change of use needed for the property. The tenant did apply for the relevant change of use.
