A recent rent review dispute has caused a stir. The dispute concerned Britain’s biggest selling broadsheet, The Daily Telegraph, huge sums of money and one of the country’s most prestigious buildings, Canary Wharf (which is, according to the Inland Revenue’s postcode checker, bang in the middle of a disadvantaged area), and an issue that is certain to arise again in rent reviews. The issue is the length of the hypothetical term. Market practice and a hardening economy have made shorter leases more attractive than longer ones. When most businesses are looking for 10 to 15 year leases, the rent under a 25-year hypothetical lease will be discounted. The newspaper won the day in court. However, the amount of money involved may mean that we hear some more about this.
For more information, see Sandi Murdoch’s legal note,
Nicholas Redman, professional support lawyer at DLA
A recent rent review dispute has caused a stir. The dispute concerned Britain’s biggest selling broadsheet, The Daily Telegraph, huge sums of money and one of the country’s most prestigious buildings, Canary Wharf (which is, according to the Inland Revenue’s postcode checker, bang in the middle of a disadvantaged area), and an issue that is certain to arise again in rent reviews. The issue is the length of the hypothetical term. Market practice and a hardening economy have made shorter leases more attractive than longer ones. When most businesses are looking for 10 to 15 year leases, the rent under a 25-year hypothetical lease will be discounted. The newspaper won the day in court. However, the amount of money involved may mean that we hear some more about this.
For more information, see Sandi Murdoch’s legal note, A more satisfactory outcome Estates Gazette 15 November 2003, p129, or check out the full law report: Canary Wharf Investments (Three) v Telegraph Group Ltd [2003] EWHC 1575 (Ch); [2003] 46 EG 132.
Nicholas Redman, professional support lawyer at DLA
