A complex raft of legislation and case law define the Landlord and Tenant (L&T) relationship making it an area where, most often, only experienced and knowledgeable practitioners can operate.

CVS can help clients manage their property costs and also negotiate a fairer deal with their landlord wherever circumstances allow. To deliver results, our bespoke database produces evidence and statistics to support future rent reviews and lease renewals. Backed by the experience of our surveyors, together with technical and legal data, CVS is well placed to negotiate the best deal for our clients whatever the market conditions, while giving realistic advice about the possible outcome of any dispute resolution.

Our Services

• Lease re-gearing

  Re-gearing a lease can help occupiers reduce costs and provide better business flexibility.

  A lease can be varied at any time. However, rent reviews and break dates offer good opportunities for tenants to explore the possibilities of potential changes to the lease. If the tenant intends to stay in the premises beyond the current lease break/expiry date and the lease break or expiry is within the next three years or so, re-gearing the lease can be a valuable exercise. Tenants may be able to negotiate benefits with a lease re-gear, such as realigning break clauses to match their own business targets, or a capital payment, introducing a rent holiday or negotiating refurbished communal areas and services by the landlord. The lease re-gear can also include a review of lease clauses so that the tenant has greater flexibility to allow sub-letting, or reduce the amount of floor space occupied and at a lower rent.

  Faced with the prospect of no tenant at all and the liability for empty property business rates, the landlord may decide that a reduction in the passing rent is a better option than vacant premises.

  The re-gearing process

  The process of re-gearing a lease is relatively simple. It usually involves the completion of a Deed of Variation, or a surrender of the existing lease and re-grant of a new one (however, the tenant will be liable to pay stamp duty land tax on the re-granted lease).

  In the current economic climate, re-gearing is a positive way to help both the landlord and tenant achieve their goals. The flexibility of re-gearing means there are many ways to tailor the process to specific circumstances and both parties should be able to reach a mutually acceptable agreement quickly.

• Rent reviews

  Do you have a potential rent increase hanging over your head? Rent review clauses are a feature of most modern commercial leases and where the rent review is outstanding the landlord, in the majority of cases, can legally implement the review, backdate any increase and charge interest on the back rent.

  The majority of rent review clauses tend to be upwards only. The key to optimal success in rent reviews is detailed local market knowledge and the time consuming task of analysing market trends.

  Many rent review provisions are complex and expert advice is essential in virtually all cases. There are a number of issues with rent reviews that need to be taken into consideration such as:

  • Timetable for notices & whether time is of the essence
  • Floor area – as defined by the RICS Code of Measuring Practice
  • Terms of lease to be assumed on review
  • Market comparables
  • Building/unit specification
  • Dispute resolution and procedures
  • Modifications and improvements

  Here at CVS we can look into all matters determining rental levels and we can put a robust case forward to your Landlord to get the best results for your business – working on a results only basis. Let CVS take the reins so you can be safe in the knowledge that we will work in your best interests on a contingency, risk free basis.

• Lease renewals

  Our lease renewal negotiation service is designed to enable clients to benefit from our local knowledge of the market and to obtain best value, particularly in a market where rents are falling and where landlords are being more generous in offering rent-free periods and capital contributions. We act on behalf of tenants to achieve best results in lease renewal transactions.

  Our lease renewal service covers:

  • Rental valuation and appraisal of lease terms
  • Tactical advice on timing and serving of statutory notices
  • Advice on case law and legislation in conjunction with our client’s solicitors
  • Negotiation and representation at County Court

  A successful lease renewal will be the result of in-depth research, technical expertise and skilful negotiations of the terms of the new lease. We possess an excellent understanding of these issues and bring our knowledge of them to bear in representing our clients.

  We also provide advice on compensation matters in the event of the Landlord’s successful opposition to the grant of a new lease. We can assist with the following:

  • Assessment of rental value
  • Negotiating rent free periods/landlord’s capital contributions
  • Measuring and agreeing the rentable floor area
  • Providing rental evidence of comparable office lettings to enable a lower rental settlement to be negotiated
  • Negotiating the detailed lease terms
  • Preparation of Heads of Terms document – setting out the agreed lease terms
  • Representing tenants in rent review negotiations
• Dilapidations

  What are Dilapidations?

  Dilapidations are breaches of covenant to repair a building contained in a lease. Such breaches can take any form but are usually something that is falling into disrepair or has been broken. Dilapidations are often considered by tenants as insignificant however, the liability to repair can have serious financial implications and therefore the tenant must seek advice of a surveyor to avoid, limit or mitigate dilapidation claims from the landlord.

  CVS can advise on:

  • The scope and effect of repairing covenants and specific strategies
  • Preparation and service of schedules both interim and terminal
  • Relevant case law
  • Compliance with legislation
  • Tenants’ improvements
  • Loss of rent and other claims
  • Negotiate financial settlements if required or agreement upon scope, implementation of work
  • Litigation support

  No two dilapidations claims are the same because no two buildings are the same, nor will the lease covenants or other circumstances necessarily be similar either. It is therefore always prudent for the tenant to seek professional advice before contracting a new lease, or when served with a schedule of dilapidations in respect of an existing or historic lease.

Lease Advisory Frequently Asked Questions

• What should my rent be?
  We can help you to determine the appropriate rent using our extensive data bank of properties in the UK.
• Why should I resist this rent rise?
  Property is often the second highest business cost after wages. A rent rise has a significant impact on profit, so challenging it can be very worthwhile.
• What does my surveyor do after being instructed?
  Your surveyor's first job is to read your lease which includes the terms of your rent review. This is an important step as leases can be difficult to interpret.
• Why is it important to read the lease?
  Your surveyor considers your entire lease, as well as the timetable and your need to serve notices. Your lease may have set different terms for rent review to those on which property is currently letting. Careful reading may also show terms which your landlord has not taken into account in the proposed new rent. All legal terms dictated by your lease must be clarified at the outset. Until this is done your surveyor has no clear idea of what to value or the basis of valuation. The difference to the rent can be considerable.
• What other matters do I need to think about?
  The relationship with your landlord must be considered. A surveyor will maintain good diplomatic relations and will also consider your overall objectives. You may want to take up several other property matters with your landlord and rent reviews often give rise to other negotiations. Your surveyor is qualified to advise you on the overall commercial impact of proposals and to reflect this in your rent review and parallel negotiations. Once settled, your new rent cannot usually be reduced before the end of the lease. If you settle too high, you reduce the value of your lease, which may become hard to sell.
• Is it really worth paying fees to a surveyor?
  In short, yes. A professional often finds extra keys to turn a negotiation in your favour. Employing a surveyor means you have expert backing, and this alone can discourage a landlord from excessive demands. Savings found by a professional can pay back the cost of fees very quickly.
  
  You protect yourself and your company by instructing a Chartered Surveyor to act for you, who is always required to hold professional liability insurance.
• What happens once we have agreed the new rent?
  Most negotiations end in agreement and a review memorandum is prepared. Although it is a non-controversial document it is often prepared by solicitors. It is attached to the lease, and your rent account is adjusted accordingly.
• What if negotiations fail?
  No surveyor willingly subjects a client to the stresses of arbitration. However a goal of negotiation is to establish exactly what can be achieved by negotiation without the need to go to arbitration. If all else fails, leases normally allow either formal arbitration or an arbitration-style process. Only a minority of cases use these and the decision to do so is taken by you in the light of the situation at the time
• What savings can I expect by taking professional advice?
  Savings can range from 5% to 50% or more of a landlord's initial demand. Savings often run to the end of the lease, as the new rent often becomes a new baseline for the rest of the lease term.
• What do rent review surveyors discuss?
  An important area of expertise of the rent review surveyor is the considerable body of case law on rent review. Many issues have come before arbitrators and the courts. Here are three common ones:
  
  • Many leases make the tenant pay for all repairs, the cost of building insurance, and the cost of a managing agent. Actual service charge costs under a particular lease may be uncompetitive today. Depending on the terms of your lease this may be relevant at rent review.
  
  • A business tenant who has carried out improvements must know how to resist a landlord trying to reap the benefit of these for him or herself at rent review.
  
  • Every lease restricts the use of the property. Early cases allowed some tenants to claim discounts because their specified use meant the property could only be let to a limited market. Landlords countered these decisions by inserting clauses in new leases to stop restrictions on use being taken into account at rent review. Depending on the lease, these attempts by landlords may be of limited effect only.
• What does my surveyor do next? How do we look at the market?
  The next step is to survey your property. After taking floor areas and noting features and the superficial condition of the building and surrounding area, your surveyor looks at the legal terms of letting in the light of your actual property. For instance a legal right to sub-let a floor over a shop will be worth less without a separate entrance to that upper floor.
  
  When examining current lettings it is not enough to take the face value per square foot of each current deal as reported. Their circumstances often vary considerably from the basis to be assumed on your review. It is important to investigate the circumstances of known deals in your area before assuming they indicate correct current value on your rent review.
  
  Your surveyor will also consider case law. A good deal of case law covers rent review and the right approach to take. Finally your surveyor stands back and considers all the assembled information, and sets out a valuation for negotiation.
• How should I approach my lease renewal?
  Treat your lease renewal like any contract you renew with a supplier. What are your business needs? What is your market doing? Do you need bigger or smaller premises? Would you trade more profitably somewhere else? Do you want to stay as you are? Would you prefer to alter the property? What are your outstanding financial liabilities under your existing lease? Answering these and similar questions gives you a foundation for your renewal strategy. Your chartered surveyor will help you establish your strategy.
• How do I secure a right to lease renewal?
  Consult your solicitor. Never delay. To secure your rights you must apply to court on a strict timescale, strict rules apply to your circumstances. Your legal position can be more complex than you think. UK courts constantly emphasize that leaseholders who fail to take action risk losing their rights.
• How do I negotiate with my landlord?
  Once your solicitor has secured your legal position, your court application for lease renewal sets a framework for negotiations. Your chartered surveyor helps you with professional advice and negotiation on your commercial position. You and your landlord may agree whatever is jointly acceptable for your new lease. If you cannot agree, the court will impose its own terms. Even then, if you still do not like the terms you can apply to have them revoked. Most lease renewals are agreed without a court hearing. If a hearing is necessary your chartered surveyor can give expert help.
• How long before my lease expires should I start looking at this?
  18 months usually allow you to consider all your options at lease renewal. You should certainly look into the matter with only 12 months left to run. As time passes you leave yourself fewer options in dealing with your landlord and your general situation.
• Can I secure a right to renew?
  The Landlord and Tenant Act secures most business leaseholders’ right to lease renewal. To secure a right to renew you MUST follow correct legal procedures. It is up to you to act.
• Is it really worth paying fees to a surveyor?
  You would expect a surveyor to say yes to this question, but it is usually true. A professional often finds extra keys to turn a negotiation in your favour. Employing a surveyor means you intend to be taken seriously and this alone can discourage a landlord from excessive demands. Tenants have often saved thousands of pounds off a landlord's demand by taking professional advice.
  
  Savings found by a professional can pay back the cost of fees very quickly. Superb commercial negotiators in their own field recognise they may not know enough about land law and valuation to be sure they are getting the best deal.
  
  You protect yourself and your company by instructing a chartered surveyor to act for you, who is always required to hold professional liability insurance. Your interests always come first as they do whenever you instruct a professional from a major institution.
• What if I have no right to lease renewal?
  You can be turned out or you may find yourself agreeing a new rent well over the odds rather than be turned out. Most landlords know you will not usually want to pay costs of moving. Shops often lose trade if they move.
  
  You may also find yourself agreeing to meet extra costs as well as the rent. If the current property market is buoyant, failing to secure your rights can be even more serious than if the market is depressed