Podcast Location:
Download it here [file size: 21.4 MB]
Categories:
Commercial Property
CPD Points:
Up to 1 point. details »

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Regulated by the Solicitors Regulation Authority:
Listen and pass the quiz: Gain 1 CPD point (60 minutes)
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Regulated by the Bar Standards Board:
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Regulated by ILEX:
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Cost:
  • FREE
Length:
30 minutes of audio
(+ optional 5 minute online quiz)
Plays on Computer:
Yes Downloadable as MP3:    Yes
Contributor(s):
Course Aims:

This podcast aims to provide an introduction and overview of the subject of rent review clauses in commercial leases, including the mechanics of initiating and completing reviews, the presumption in this respect that time is not of the essence (and the exceptions to the same) and the consequences for various parties when the review is delayed, particularly any guarantors, in the light of the decision in Scottish & Newcastle v Raguz. It is intended that this podcast will also provide an overview of the various possible bases on which the rent review exercise can be performed, focusing particularly on the concept of the hypothetical lease, the kinds of difficulties raised and the principles applied in the interpretation of various common assumptions and disregards as to its terms, and the premises to be valued.

Outcomes:
After completing the course you will:
  • Understand the principles applicable in the interpretation of rent review clauses in commercial leases;
  • Be aware of the mechanics of initiating and completing rent reviews;
  • Understand the purpose of any presumption or disregard about the lease (and the exceptions to the same);
  • Know the consequences for third parties when the review is delayed, particularly any guarantors;
  • Understand the concept of the hypothetical lease;
  • Be aware of the role of third parties in determining rent reviews where the parties cannot agree.
Level:
Intermediate Difficulty: 3 of 5
Classification:
Legal Principles
Practical Guide
Procedural
Sources and References:
  • Law of Property Act 1925 s.146;
  • Landlord and Tenant Act 1964 s.24, 29;
  • Late Payment of Commercial Debts (Interest) Act 1998;
  • Code for Leasing Business Premesis in England and Wales (2007);
  • Regulatory Reform (Business Tenancies) (England and Wales) Order (SI No.2003/3096) Art 18;
  • Landlord and Tenant (Covenants) Act 1995 s.17(2);
  • Law of Property Act 1925 s.24(1)b;
  • Lee-Parker v Izzet [1971] 1 WLR 1688;
  • Connaught Restaurants Ltd v. Indoor Leisure Ltd [1994] 1 WLR 501;
  • National Carriers Ltd v Panalpina (Northern) Ltd [1980] UKHL 8;
  • Dukeminster (Ebbgate House One) Ltd v Somerfield Properties Co. Ltd [1997] 40 EG 157;
  • Dennis & Robinson Ltd v Kiossos Establishment [1987] 1 EGLR 132;
  • Broadgate Square v Lehman Bros [1994] 1 EGLR 143;
  • Plinth Property Investments Ltd v Mott, Hay & Anderson [1979] 1 EGLR 17;
  • NatWest v Arthur Young McClelland Moores & Co [1985] 273 EGLR 402;
  • Prudential Assurance Co Ltd v Grand Metropolitan Estate Ltd [1993] 32 EGLR 74;
  • United Scientific Holdings Ltd v Burnley Borough Council. [1978] AC 904;
  • Scottish & Newcastle plc v Raguz [2008] UKHL 65.

This podcast is an introduction to the topic of rent review clauses in commercial leases. It deals with the mechanics of initiating and completing reviews, including the presumption that time is not of the essence, and the consequences for the parties when the review is delayed and the role of third party valuers.

The podcast also discusses the House of Lords decision in Scottish & Newcastle v Raguz [2008] UKHL 65, on the requirements under Landlord and Tenant (Covenants) Act 1995 to serve notices on guarantors and the possible bases on which the re-valuation exercise can be performed dealing with the concept of the hypothetical lease, common assumptions and disregards as to its terms, and the premises to be valued.

Podcast added: 11/12/09

NB: Owing to the various changes to VAT in the last 2 years, references to the VAT rate in this podcast may not reflect the VAT rate at the date of listening

Podcast last reviewed: 2011-03-28

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