Legal Question in Real Estate Law in United Kingdom
Commercial Lease Renewal
Our 3 year lease is due to expire at the end of september this year. We have received notice from our Landlord's agent to terminate our lease if we do not agree to a rent increase from �8608 to �11k pa. Our initial starting rent was �8500 pa and has increased each year by 3% as agreed but I feel their request for this massive increase is unreasonable. Are there any rules or laws which prevent them from increasing the rent at such a tremendous rate??? He has also asked us to sign a new 5 year lease with a 3 year rent review clause allowing him to increase the rent again but without a ''get-out'' clause for us..... We do not want to move but i feel like we have no choice. The shop next door to us is being leased at �7000 pa and is almost identical in size. He has had 1 company round to value the property and it is that agent who have advised him to ask for 11k a year..... please help!!!
1 Answer from Attorneys
Re: Commercial Lease Renewal
You should check the lease to see if you have a right to ask the court to renew the Lease and fix a rent.
You will have this right unless Part II of the Landlord and Tenant Act 1954 was excluded from the Lease.
If the above act was excluded you can only try and negotiate the best rent you can. You may be able to achieve a better settlement by employing a surveyor of your own.
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