Rent Review and Lease Renewal Instructions Flashcards
What needs to be agreed at the start of the instruction?
Terms of Engagement
What should you understand in terms of your client?
Their strategy and objectives
What documents should be obtained?
Copy lease
Plans attached to lease or Deeds of Variation
Copies of any licences e.g. for alterations, improvements, sub-letting, or assignment.
Copies of rent review memorandums
How do you arrange an inspection?
Obtain contact details for tenant or agent.
What should be agreed in terms of serving notices?
Confirm who responsible.
What should you check before issuing Terms of Engagement?
You are competent
No personal interest or conflict of interest
What are fees based on?
A percentage of new rent agreed
A percentage of the saving made from the quoting rent
A fixed fee
An hourly rate (mor common for third party determinations)
Incentive fee
What important aspects of the lease do you need to understand?
Rent review clause.
Check not contracted out of 1954 Act (security of tenure provisions) in case of a lease renewal. IF SILENT - lease is inside Act.
What is it important to check for a rent review?
Whether time is of the essence.
What should be done after accepting the instruction and studying the lease?
Inspection and measurement
What do you need to do after inspecting?
Undertake a market rent valuation, having regard to the terms of the lease.
Prepare a report to the client setting out recommendations.
A Lawyer should always be instructed to serve which type of notice?
1954 Act lease renewal
What do you need to do upon receipt of client instructions regarding a strategy?
Open negotiations once the correct notices have been served.
Check any notice received is valid!
What needs to be done upon conclusion of negotiations in a rent review?
Document the rent review in a rent review memorandum.
What should be doe upon conclusion of lease renewal negotiations?
Instruct solicitors to prepare the new lease in accordance with the heads of terms prepared.
