by Cherry
6. November 2010 00:25
TIP 1
Check that you understand the basis on which the rent can be changed. Can the rent go down as well as up? You should see if the Landlord is prepared to allow upward or downward rent reviews and if not, you should consider asking for a break option exercisable only by the tenant.
TIP 2
Make sure that the interest rate on the difference is no higher than bank base rate. Try to introduce a provision whereby te Landlord forfeits interest on the difference if he/she does not initiate the rent review process prior to the review date.
TIP 3
Avoid strict time limits in the rent review clause (other than referred to in Tip 2) - those could result in you losing the ability to negotiate.
Taken from The Code for Leasing Business Premises in England and Wales 2007
For further information on rent review, please contact Jeffrey Freed jlf@freedandco.com