Can lease renewals be quick and easy? Yes, they can! We have recently completed a lease renewal for an office in Plymouth on behalf of a Landlord through a renewal by reference to the original lease. In the first instance, we provided a Market Rent report to the Landlord which provided our recommendations for the renewal. This report included evidence to support that the passing rent was in line with comparable properties, therefore an uplift at renewal would not be appropriate. In addition, the other terms of the lease were consistent with the type of occupation and comparable evidence. The original lease was straightforward and neither Landlord nor Tenant sought to change many terms at renewal. The most substantial amendment was the addition of a break option, at the request of the tenant due to a change in their working practices, which the Landlord was willing to approve due to the established relationship between both parties.
Making lease renewals quick and easy
The amendments to the existing lease were included within a schedule attached to the renewal lease setting out the variations to the existing lease. Adopting this approach meant that Heads of Terms were issued to the solicitors more quickly, saving time and professional fees for our client. While it can be more complex to review two documents at the next lease event, if the majority of the original terms of the lease remain appropriate for both parties, a renewal by reference to the original lease may be worth considering to simplify the lease renewal process. In practice, we see a renewal on this basis working well where the lease terms are to remain much the same and there is a good existing relationship between Landlord and Tenant.
If you own or occupy commercial property under a lease with an upcoming renewal and think this may be a beneficial process for you and the other parties involved, please get in touch to see how our Lease Advisory team can help.
