We were asked to assist a client in Exeter with a highly complex rent review when the property was held under two leases and market comparisons were difficult to obtain. In these situations, using lease consultants was crucial to understanding the legal implications of the lease and in achieving a successful outcome for the tenants.
BOC’s showroom on Marsh Barton, Exeter is a good example of the complexity rent reviews in leases can cause. The property is a building with a yard but held under two leases, both including the right to review the rent from 29 September 2018. The landlord tried to increase the total rent for both from £25,100 to £34,500 per annum, presenting a significant increase for BOC that we helped resist.
A proper legal understanding of the leases proved a vital part of the dispute. The leases were complex including restrictions on the assumed use to be valued. As separate leases, each rent review had to ignore the other leading to some interesting problems. For example, valuing the building with the yard occupied by someone else meant the building had no loading access.
The property is also very different to other properties on Marsh Barton making it almost impossible to find rental agreements to compare it to. The landlord’s attempt to follow top of the market showroom rents had to be blocked. Fortunately, our detailed market knowledge of Exeter meant we were aware of the rent for similar properties which were available at a much lower rent.
Our combination of expert legal knowledge and market awareness reduced the rent increase to only £28,250 per annum, saving BOC over £30,000 in the period until the next rent review.
Our experienced team is ready to assist with unparalleled regional advice.
