Commercial Lease Rent Review Solicitors
If you are facing a rent review under a commercial lease and want to protect your position, our solicitors, with over 25 years of experience in commercial landlord and tenant law across Greater London, can help.
A commercial lease rent review in England and Wales is a formal contractual process governed by the specific provisions of the lease, including the type of review, the assumptions and disregards that apply, and the timescales within which each party must act. Getting the procedural steps right and understanding the basis for determining the reviewed rent are central to achieving the best possible outcome.
We act for both landlords and tenants in commercial rent review disputes across all property types, from high street retail to offices and industrial premises. We hold a Lexcel accreditation from the Law Society of England and Wales. We are regulated by the Solicitors Regulation Authority.
What does our rent review legal service cover?
Rent reviews in England and Wales take several forms, including upward-only open market reviews, index-linked reviews, and fixed increase reviews, each governed by different mechanisms under the lease and, where applicable, the Landlord and Tenant Act 1954. Our team advises and acts on the following matters:
Upward-only rent reviews, advising landlords and tenants on the review mechanism and the assumptions and disregards under the lease and the Landlord and Tenant Act 1954.
- Open market rent reviews, where the reviewed rent is assessed by reference to what a willing tenant would pay for a new letting of the property at the review date.
- Index-linked rent reviews, advising on leases where the rent is adjusted by reference to the Retail Prices Index or Consumer Prices Index.
- Fixed increase reviews, advising on leases where the rent steps up by a predetermined amount or percentage at specified intervals.
- Trigger notice advice, advising on the service of rent review notices, the time limits that apply, and the effect of a failure to serve within those limits.
- Assumptions and disregards, advising on the standard assumptions and disregards that apply to the hypothetical letting under the lease, including the disregard of the tenant’s improvements.
- Comparable evidence, working with specialist surveyors to assemble and present comparable lettings evidence in support of the argued rent.
- Third-party determination, where parties cannot agree and the review is referred to an independent expert or arbitrator.
- Rent review memoranda, recording the agreed-upon reviewed rent in a formal document signed by both parties.
- Time of the essence advice, where one party asserts that a failure to respond within the required period has resulted in the loss of review rights.
Why choose Law Lane for rent review matters?
Rent review disputes require both legal precision and valuation expertise. The legal issues include the correct interpretation of the review clause, the scope of any assumptions and disregards, and the procedural steps that trigger or protect against the review. The valuation issues require analysis of comparable evidence and an understanding of how a specialist surveyor will assess market rent. We bring both to every instruction.
Acting for landlords and tenants means we understand the arguments on both sides. Where a landlord seeks to argue that the tenant’s improvements should be disregarded and that the premises attract a premium rent, we know how to test that position. Where a tenant wishes to limit a rental increase in a rising market, we know whether the lease provides scope to do so.
Our Lexcel accreditation from the Law Society of England and Wales, and our 4.95 review rating from over 1,200 reviews, reflect our high standard of work. We give clients a realistic timetable, keep them informed at every stage, and ensure the legal work does not become the bottleneck in the transaction.
Get in touch
Our commercial property team is ready to advise you on your rent review today. Whether you want to contain an increase or ensure a review is carried out correctly, we can help. Please phone: 020 7870 4870 or email: info@lawlanesolicitors.co.uk
Law Lane Solicitors is proud to be accredited under The Law Society’s Immigration and Asylum Accreditation.
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Frequently Asked Questions –
Rent review
What is an upward-only rent review?
An upward-only rent review allows the landlord to increase the rent at the review date to the open market level but prevents any reduction if the market has fallen. The reviewed rent can only be equal to or higher than the passing rent. Upward-only reviews are the most common type in institutional commercial leases in England and Wales. A tenant who signed at a high point in the market may continue to pay above-market rent throughout the remainder of the term.
What assumptions and disregards apply to an open market rent review?
The assumptions and disregards in the lease define the hypothetical letting on which the market rent is assessed. Common assumptions include that the property is vacant and available for letting, that the tenant has complied with their obligations, and that no goodwill attaches to the premises. Common disregards include any effect on rental value of the tenant’s occupation and any improvements carried out by the tenant with the landlord’s consent. The precise wording of each assumption and disregard directly affects the assessed rent.
Is time of the essence in a rent review?
Whether time is of the essence depends on the specific wording of the lease’s rent review clause. Where time is not of the essence, a party’s failure to serve a review notice within the specified period does not automatically mean they lose their right to review. Where time is expressly of the essence, failure to act within the period has that result. We advise on the position under the specific lease before any deadline passes.
What happens if the landlord and tenant cannot agree on the reviewed rent?
If the parties cannot agree on the amount of the reviewed rent, most leases provide for the dispute to be referred to an independent third party, such as an expert or an arbitrator. An independent expert applies their own expertise and is not bound by the parties’ representations in the same way as an arbitrator. An arbitrator conducts a more formal process and is bound by the parties’ submissions. We advise on which forum is provided for in the lease and how to present the case effectively.
Can I recover the cost of improvements when the review comes around?
In most commercial leases, improvements made by the tenant with the landlord’s consent are disregarded when the reviewed rent is assessed. This prevents the tenant from being penalised for having improved the property at their own expense. The disregard usually applies to improvements carried out during the current or any previous tenancy of the same premises. We review the improvement disregard in the lease before any review is triggered.
What is a rent review memorandum?
A rent review memorandum is a short document signed by both parties that records the agreed-upon rent and the date it takes effect. A memorandum provides a clear written record of the outcome of the review and avoids any later dispute about what was agreed. Where a third party determines the review, the memorandum records the decision. We prepare or review memoranda as part of every rent review instruction.
Do I need a surveyor as well as a solicitor for a rent review?
Yes. The legal and valuation aspects of a rent review are distinct. The solicitor advises on the review mechanism, the procedural requirements, and the legal interpretation of the lease. The surveyor advises on the market rent, assembles comparable evidence, and, where necessary, presents the valuation case to an independent expert or arbitrator. We work alongside specialist rent review surveyors and can recommend an appropriate expert where one is not already instructed.
How much does an initial consultation cost?
We offer a fixed-fee initial consultation for rent review matters. At that meeting, we review the lease, assess the review mechanism and any procedural steps already taken, and give a costs estimate for the work. Please get in touch with us to arrange a time.
Commercial Property Team
Saghir Ahmad
Managing Director, SolicitorView Profile | ContactBook Appointment
Brian Hoffman
Consultant SolicitorView Profile | ContactBook Appointment
Amrit Kaur Grewal
SolicitorView Profile | ContactBook Appointment
Ata Ur Rahman
SolicitorView Profile | ContactBook Appointment
Ganga Gunatilake
SolicitorView Profile | ContactBook Appointment
Adedamola Adedeji
SolicitorView Profile | ContactBook Appointment
Kainaat Malik
Trainee SolicitorView Profile | ContactBook Appointment
Rahat Ara Gitu
SolicitorView Profile | ContactBook Appointment
Amina Aziz
ParalegalView Profile | ContactBook Appointment
Esra Demirtas
ParalegalView Profile | ContactBook Appointment
Farzana Mohammed
Trainee SolicitorView Profile | ContactBook Appointment
Christian O. Nwaorah
SolicitorView Profile | ContactBook Appointment
Hafza Hassan
Trainee SolicitorView Profile | ContactBook Appointment
Hina Latif
Legal Consultant / RFLView Profile | ContactBook Appointment
Aiziya Khan
ParalegalView Profile | ContactBook Appointment
Sanushi Sumaya Hemantha
ParalegalView Profile | ContactBook Appointment
Syed Umer Ali
ParalegalView Profile | ContactBook Appointment
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