Assigning Lease during rent review

[se18]

I am in the possess of negotiating a rent review with a tenant as per the current commercial lease. However the current tenant wants to assign the lease to somebody else. Can I refuse to consent to this new assignment until the new rent has been agreed? The new rent is scheduled for septmember this year.

[Editor]

Where the lease allows assignment you are obliged not to unreasonably object or delay.
Under these circumstances I would think it not unreasonable to request completion of the rent review before a licence to assign is granted.
This would also give the new tenants some certainty as to their future commitments.
Don't forget to properly qualify the tenants in terms of their use (you can object here) and their credit worthyness - have them complete a tenancy application and do credit checks & references - see:
http://www.landlordzone.co.uk/agreements.htm
and
www.TenantVERIFY.co.uk

[propman2]

i think it would most definately be unreasonable to withold consent to assignment on basis that rent review is outstanding.

When you think about it that would give the landlord an advantage which lies outside the purpose of a rent review.

He could ask for an unreasonably high rent on the basis that the tenant may accept it to allow him to move on.

So my view is you would be unreasonable to withold consent

[yeahbutno]

I tend to agree. If the review was imminent or overdue, then I think it would be perfectly acceptable to with-hold consent, but September is five months away.

[Editor]

Quite right Yeahbutno - I'm afraid I missed that - the review is not yet due, therefore it's not appropriate to withhold consent.
I still think it's appropriate to withold consent were the review is overdue. Although this does rightly put some pressure on the current tenant to settle this is counterbalanced by what he can get the incoming tenant to accept.

[se18]

All points considered. However dont u think the new tenant needs to know what the new rent is before he commits himself. This way he can make adjustments to the premium he pays. He may pay a high premium and then be faced with an increased rent (market rate of course). Looks like the only person to benefit will be the current tenent who is selling up just months before the new rent is due.

[yeahbutno]

Buyer beware.

Not your problem. The new tenant will be aware that the rent is due for a review shortly after he takes over, and if he's got his head screwed on, he will have researched the local market to establish the market rental.

And of course, the rent review will be negotiable...

[propman2]

sorry to reiterate..........my view is you cannot withold consent for the existing tenant not having agreed a rent review.

this would be tantamount to blackmail ie accept my rent and i will grant consent to assignment

forget all notions of timing and whether review is tomorrow or 6 months away you just cannot withold consent.

there are other mechanisms available, subject to what the lease says, for bringing a review to a settlement ie arbitarator or expert