In almost every aspect of life we all like to get a good deal. It is no different with commercial rent. Landlords and Tenants alike, both parties will be keen to maximise their profits and minimise their risks, which is why rent reviews are a particularly fundamental and heavily negotiated contract term. Essentially both parties want entirely the opposite from the other.
As a Chelsea fan, I had assumed that the likes of Manchester United and Manchester City would prove to be my team’s most formidable opponents this season. However, a family of four have sought to scupper Chelsea’s plans and in doing so, have demonstrated that rights to light remain an important consideration and a potentially expensive hurdle.
A business tenant who satisfies the criteria in section 23 of the Landlord and Tenant Act 1954 (LTA 1954) will have a statutory right to a new lease at the end of their current contractual term. When drafting or negotiating a renewal lease, it is tempting to assume that many of the terms under the original form of lease will continue to be fit for purpose. However, failing to reflect the changing commercial relationship between the parties can cause serious practical and financial issues later on.
Earlier this year, the Office for National Statistics published a statement saying that the Retail Price Index (RPI) "is a flawed measure of inflation with serious shortcomings and we do not recommend its use.”