Rent Review - FBT/AHA

Question 1

Rent review formula - AHA

Answer 1

Sch.2, Para 1

The rent at which the holding might reasonably be expected to be let by a prudent and willing landlord to a prudent and willing tenant, taking into account all relevant factors including:
- Terms of the tenancy
- Character and situation of the holding
- Productive capacity
- Related earning capacity
Comparable rents

Question 2

Implementation?

Answer 2

RR is implemented by serving a s.12 notice on the other party.

Demanding the rent properly payable is referred to arbitration for determination

Question 3

s.12 Notice

Answer 3

• 12-24 months long
• The review date is the next available termination date
• Must be served in writing
  Correctly identifies the terms of the tenancy, the holding and the parties.
• The rent can not be reviewed within 3 years of the last.

Question 4

Service?

Answer 4

The notice can be served:
- In person
- Left at his proper address
- Recorded delivery

Question 5

Timescales

Answer 5

Before the review date, the parties must have:

• Agreed the rent
• Appointed an arbitrator by agreement
• Lodged an application with the RICS/CAAV to appoint an arbitrator.

Question 6

FBT - RR Formula

Answer 6

The rent at which the holding might reasonably be expected to be let on the OPEN MARKET by a willing LL to a willing T taking into account all relevant factors including the terms of the tenancy.

Question 7

S.10 Notice

Answer 7

Implemented by a s.10 Notice demanding the rent properly payable is referred to arbitration.

The notice is 12-24 months
The rent cannot be reviewed more than 1 in every 3 years.