Rent review evidence Flashcards
What was the letting at 779 Fulham Road and how did you compare this against the subject?
Nov-21 OML to Nature’s delight
- Post-dated evidence, we had left lockdown, so placed less weight on this
- Net effective showed £71.50 psf ITZA - as a result of stepped rents and the short term certain - big deduction
Why use post-dated evidence?
Smiley v Townsend 1950, as well as more recent case in 2007
Found evidence admissible if it supports circumstances which could have been known about at the review date
Supports the suspected impact of the covid lockdown on rents and the occupier market
What was the letting at 725 Fulham Road and how did you compare it against the subject?
- Best evidence as also in lockdown
- Comparable position within the pitch
- Also class E
- Analysed by taking 3m for fit out and amortizing remainder (5m) over term - net effective of £86.50 psf ITZA
- 5 year term certain, considered there would be a discount for this for 10 years
What sort of discount would you expect to see between 5 and 10 years?
Depend on the market - what term length is typical, whether the landlord thinks they could easily get a new tenant
But I’ve seen a 6m RF granted for commitment to a 10 year term certain
What was the letting at 801 Fulham Road and how did you compare it against the subject?
- Feb-20 - so a bit old and also just before lockdown, but with expectation of lockdown
- Local bakery
- As a capital sum was granted for fit out, I considered the full 6 m as incentive - £81.41 psf ITZA
What would you expect the outcome of the RR to be?
£80-85 psf ITZA
Why would rent have been highest during lockdown v pre and post lockdown?
Firstly - significant rental variation on the road due to mix of national tenants and local occupiers - some unrepresented, also due to variation in rental tone along the length of the road
Secondly - pre and post lockdown there was expectation/ aftermath of covid so market still being impacted
