Rent-free period: Assessing and adjusting the headline rent
The provision in a lease for a rent-free period, whether for fitting-out or otherwise, can be a fertile source of disagreement at rent review. Can a suggested comparable be taken as it stands? Can L (or in some cases T) rely upon an artfully worded assumption or disregard – as considered, for example, in St Martin’s Property Ltd v Citicorp Investment Bank Properties Ltd [1998] EGCS 161?
Either way, the professional adviser will find himself at sea if he loses sight of the investment/accountancy considerations that were, or should have been, taken into account when the lease was negotiated. Likewise, if he is unaware of the alternatives that were open to L at that time. The basics and much more are explained in
Rent-free period: Assessing and adjusting the headline rent
The provision in a lease for a rent-free period, whether for fitting-out or otherwise, can be a fertile source of disagreement at rent review. Can a suggested comparable be taken as it stands? Can L (or in some cases T) rely upon an artfully worded assumption or disregard – as considered, for example, in St Martin’s Property Ltd v Citicorp Investment Bank Properties Ltd [1998] EGCS 161?
Either way, the professional adviser will find himself at sea if he loses sight of the investment/accountancy considerations that were, or should have been, taken into account when the lease was negotiated. Likewise, if he is unaware of the alternatives that were open to L at that time. The basics and much more are explained in Seeing the truth beyond the horizon Estates Gazette 30 November 2002, p128.
