rent review on a commercial property

[RICK]

Hello all,

The current tenant is in the process of trying to assign the lease on a commercial property to a third party, the rent is currently well below market rate. Primarily due to the landlords ill health and wanting to get involved in disputes at that point.

Can the landlord stipulate the property will be subject to a new rent in line with market rates while the lease is being assigned?

Also if the current tenant refused how much does a tribunal usually cost and are costs always split equally where the parties are not in agreement?

Thanks
Rick

[Paul_f]

You might want to post this in the Commercial Property Forum to obtain more answers.......but



Hello all,

The current tenant is in the process of trying to assign the lease on a commercial property to a third party, the rent is currently well below market rate. Primarily due to the landlords ill health and wanting to get involved in disputes at that point.

Can the landlord stipulate the property will be subject to a new rent in line with market rates while the lease is being assigned? The answer lies within the lease terms, but you won't be able to add conditions just to suit yourself.

Also if the current tenant refused how much does a tribunal usually cost and are costs always split equally where the parties are not in agreement? This won't be a tribunal or court matter as the lease defines whether you can increase the rent. You don't give the term of the lease or frequency of rent reviews so I can't help much. I suggest you read the lease for your answers.

Thanks
Rick

[RICK]

Thanks Paul

The lease does allow for reviews every three years, basically trying to work out how long and costly the process of dispute could be, its below market rate and should be higher (the tenant knows this but likes to spend money arguing?!)

PS I'll move it over thanks

Rick