Rent Reviews

Most commercial leases longer than 5 years, whether it be on a shop, office, industrial unit or any other building used for business purposes, will usually have some form of provision for the review of the current rent. The basis for this review is determined by the lease, each situation invariably being very different as the terms of a review clause within a lease lay down specific considerations and assumptions that can be difficult to understand by a lay person but play a vital role in determining the correct level of market rent for the property. The rent on this property may not therefore have a direct monetary relationship to a similarly sized and used premises in the immediate vicinity.

David Kingston Chartered Surveyors have many years experience handling rent reviews on shops, offices and industrial property in the south east, particularly in Surrey, North Hampshire, West Sussex and West Kent, and has a track record of dogged determination in achieving the best results possible for his clients, however long that may take. If it is necessary to follow the third party process, we will handle all research and professional representations necessary for Expert Witness submissions for both landlord and tenant.

HELPFUL POINTER - The calculation of rent on business property is based on a number of specific criteria such as size of the property, its relative position, evidence of similar transactions (known as comparables), assumptions in the review clause etc. so its not as straight forward as it first seems as many different aspects link together to form the rental level. Invariably, the cost of appointing a surveyor will be offset many times over by the level of rent that can be obtained by professional help in rent review negotiations. Performance based fees can additionally help to engender a feeling with the client that the surveyor will do his/her best.

Lease Renewals

The business lease will eventually come to a contractual end. Current property law bestows a number of protective measures primarily designed for the benefit of the tenant who holds a business lease on commercial property. One of the key measures is the statutory provision of security of tenure which enables tenants to avoid the implications of immediate eviction from the property (although there are exceptions) and the obvious consequences of such action. The lease renewal process is extremely complicated and tactics abound. There are prcocedural rules for both landlord and tenant to adopt and consulting a surveyor at least 15 months BEFORE expiry of the lease is essential.

David Kingston Chartered Surveyors have many years experience handling the lease renewal process for both landlords and tenants and has a track record for achieving the best results possible in both rental and lease terms. This renewal process can be a complicated one involving a number of technical issues which need to be fully addressed and we always ensure we have an up-to-date perspective. David Kingston Chartered Surveyors operate in most areas within the south east particularly in Surrey, North Hampshire, West Sussex and West Kent. Where required, we also undertake all necessary research and professional representations for Expert Witness submissions to Court as part of the renewal proceedings.

HELPFUL POINTER - Even if a renewal of the expiring lease is not being contemplated, there are still a number of matters to consider such as "dilapidations". Taking early advice from a surveyor before a lease renewal could avoid potential and expensive pitfalls later for both landlord and tenant. A lease is a contractual obligation between two parties and does not necessarily expire when the term ends.

Valuations

The valuation of residential and commercial property is a specialist field that requires considerable long term and widespread professional experience. David Kingston is an RICS Registered Valuer with an extensive and very varied professional background in a myriad of different property fields, therefore making him ideally suited to undertake such specialist valuation.

Valuation topics covered include:

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  Tax & Probate valuations

• Charities Act valuations

• Pension Fund & SIPP valuations

• Accountancy & Balance sheet valuations

• Rental valuations for lease negotiations

• Freehold/Leasehold valuations for sale/purchase

• Fire Insurance Reinstatement valuations

Landlord & Tenant Issues Relating to Commercial Property

There are often many very relevant matters that arise from business leases which do not relate to the popular areas of rent reviews, lease renewals or dilapidations. In fact there are so many that it would be difficult to list them all succinctly but a few of the more relevant areas include the allowable Use of the property according to the lease (The User Clause), the rights and abilities of selling/transferring the lease to another (Assignment), granting another party rights to occupy while you are still in possession of the lease (Sub-letting of Part or Whole), the liability of the original tenant after assigning the lease (referred to as Privity of Contract), undertaking authorised improvements or alterations to the property and the impact of not obtaining landlord's written consent, dealing with additional 'rental' payments (Service Charge Provisions) and so on.

HELPFUL POINTER - If in any doubt whatsoever, consult a surveyor. You may find that a simple answer to your question can save a lot of hassle and expense later on. We have found so many times that issues do not often come to light until many years after an event has taken place when it is often more challenging and sometimes costly to remedy the situation.

Acquisition of Freehold or Leasehold Property

Finding the right property to accommodate your business can be very time consuming, fraught with technical difficulties and embedded with unexpected pitfalls for the unwary. David Kingston Chartered Surveyors offer a bespoke acquisition service uniquely tailored to help you manage this process. For example, this may involve just supporting you in individual aspects of the property finding process whilst you handle those areas you are familiar with or alternatively we can fully represent your interests from inception (helping you to decide what you are looking for) to completion of a new lease or purchase.

Having the ability to identify, interpret correctly and act appropriately on the myriad of property related issues within the acquisition process is a specialist field that David Kingston Chartered Surveyors is particularly well suited to, having extensive and widespread experience within the surveying profession. This gives us an almost unrivalled insight into every aspect of this process. Some of these specialist skills on offer are listed under the services section for your information.