For businesses that lease premises, particularly those who operate in multiple locations, rent is one of the biggest fixed overhead costs and therefore it is no surprise that rent requests are being made. It is key, from both landlords' and tenants' perspectives, to be clear on what exactly is being asked for when the terms 'rent holiday', 'rent suspension' and 'rent deferral' are used, often interchangeably as if they mean the same thing.
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Latest articles from David Bell
Rent reviews often trigger a squabble between tenants who are seeking the smallest of rises and landlords looking to maximise investment returns. Two recent court decisions give guidance on the circumstances in which an expert surveyor's decision is the end of the road and on when the ordinary rules of valuation are displaced by the lease provisions.
Leases can often take several rounds of amendments before the solicitors representing the landlord and the tenant can agree on a final version. Here we consider a newly published standardised lease – the Scottish Model Commercial Lease - which aims to cut back on these more routine amendments, and speed up the letting process for both landlord and tenant.
Retail leases come with risks for both the landlord and the tenant. Landlords must set rents at the right level – one which gives them adequate returns without overburdening the tenant - then hope tenants trade well enough to meet their obligations. For the tenant, they must balance rental obligations against their trading prospects and the risk of failure. Turnover leases offer an alternative to open market leases which can mitigate against the risks of both sides and potentially benefit both parties.
The Long Leases (Prescribed Form of Notices etc.) (Scotland) Regulations 2014 Notices are required to implement the conversion of ultra-long leases to ownership under the Long Leases (Scotland) Act 2012. These Regulations prescribe the specified forms of notice under the sections of the Act referred to: