Expert View UNDERSTANDING
YOUR OPTIONS by Ashlea Thornton
Associate partner, Farleys
With the current economic climate, many tenants who are looking to renew their leases are also looking for revised terms to put themselves in a stronger financial position moving forward.
Whilst most lease renewals are governed can still be room for negotiation if both
an automatic right to renew their lease and should therefore serve a statutory notice on their landlord stating their intention to do notice on the tenant when the term of the
Irrespective of who serves the notice, the tenant should be aware of the time limits
placed upon them in agreeing the terms of the new lease to ensure that they do not
Once the notice has been served, the parties can then begin the negotiation
If a tenant is long-term and has been unproblematic, they may be in a strong position to renegotiate more
reduction, a more frequent break clause or
Some tenants may also want to consider trying to negotiate a Covid clause, whereby rent could be reduced or suspended during
...but we believe the law should be
When it comes to a request for a rent renegotiation, landlords are asked to look at the impact of a range of issues, such as any closure period, the duration and extent of restricted trading as a result of social distancing and the extra costs and
Other factors include the tenant’s previous track record under their lease terms and any
A number of possible new arrangement options are also highlighted in the code, which
for a set number of payment periods, deferral of the whole or part of the rent for one or more payment periods, or payment over shorter periods for a set time, including provision for
Oher parts of the code are concerned with issues such as service charges, recommending these should be reduced
Solicitors, says that if tenants are looking to renew or renegotiate their commercial lease, it is important that they understand what their
Some tenants might consider looking to be reduced or suspended during a further
business and few landlords will want to have
a vacant property during the current market conditions, placing tenants in a stronger
successful in requesting rent reductions or suspensions in return for an increased lease term, showing that if landlords are willing to compromise in the short term, they could have the security of a tenant in their property for
This extension will
protect businesses that are struggling to pay their rent due to the impact of Covid-19
Cavannagh, director of east Lancashire-based challenges of the current economic climate we are increasingly having discussions regarding
leases and cannot just walk away from their legal
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59
LEGAL VIEW
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