Podcast Location:
Download it here [file size: 29.5 MB]
Categories:
Real Estate & Property Law
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)
Listen only, gain ½ a CPD point (30 minutes)

Regulated by the Bar Standards Board:
Listen and pass the quiz: Gain 1 accredited CPD point (60 minutes)

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:

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

Provide an overview of the various possible bases on which the 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

The role of third parties in determining reviews where the parties cannot agree, and the ease or otherwise of challenging their outcomes

Outcomes:
After completing the course you will:
  • Understand the main principles applicable in the interpretation 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;
  • the various possible bases on which the exercise can be performed, in particular the concept of the hypothetical lease, the principles applied in the interpretation of various common assumptions and disregards as to its terms, and the premises to be valued, and the relationship between the two;
  • the role of third parties in determining reviews where the parties cannot agree, and the ease or otherwise of challenging their outcomes.
Level:
Intermediate Difficulty: 3 of 5
Sources and References:
  • Amhurst v James Walker Goldsmith & Silversmith Ltd [1983] Ch 305;
  • Barclays Bank v Savilles Estates Ltd [2002] EWCA Civ 589;
  • Beegas Nominees Ltd v Decco Ltd [2003] 3 EGLR 25 Broadgate Square v Lehman Bros [1994] 1 EGLR 143;
  • Canary Wharf Investments v Telegraph Group [2003] EWHC 1575 (Ch);
  • Co-operative Wholesale Society Ltd v National Westminster Bank plc [1995] 1 EGLR 97;
  • Hemingway Realty v Clothworkers Co [2005] EWHC 299 (Ch);
  • Iceland Frozen Foods plc v Starlight Investments Ltd [1992] 1 EGLR 126;
  • Lewisham Investment Partnership v Morgan (1997) 51 EG 75l Times, Nov25, 1997;
  • Lynnethorpe Enterprises Ltd v Sidney Smith (Chelsea) Ltd (1992) 2 EGLR 131;
  • McDonalds Realty Co v Arundel BC [2008] EWHC 377;
  • National Grid Co plc v M25 Group Ltd [1999] EGLR 95;
  • NatWest v Arthur Young McClelland Moores & Co [1985] 273 EG 402;
  • Panavia Air Corporation v Southend-on-Sea Borough Council [1988] 1 EGLR 124;
  • CA Scottish Amicable v Middleton (1994) ECGS 19;
  • Scottish & Newcastle plc v Raguz [2008] UKHL 65; [2007] EWCA Civ 1950;
  • St. Martins Property Ltd. v Citicorp [1998] EWCA Civ;
  • Secretary of State for Communities & Local Government v Standard Securities [2007] EWHC 1808 (Ch);
  • Starmark Enterprises Ltd v CPL Distribution Ltd [2001] EWCA Civ 1252;
  • Sudbrook Trading Estate v Eggleton and others [1983] 1 AC 444;
  • United Scientific Holdings Ltd v Burnley BC (1978) AC 904 HL;
  • Wilderbrook v Oluwu [2005] EWCA Civ 1361;
  • Arbitration Act 1996;
  • Landlord and Tenant (Covenants) Act 1995, s.17;
  • Law of Property Act 1925 s.24(1)(b);
  • Town and Country Planning (General Development Procedure) (Amendment) (England) Order SI 2006 No. 1062.

Introduction to the topic of rent review clauses in commercial leases. Covers (1) the usual 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; 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 in this context; (2) the various possible bases on which the re-valuation exercise can be performed: the concept of the hypothetical lease, common assumptions and disregards as to its terms, and the premises to be valued; (3) the role of third party determinations and the ease or otherwise of challenging their outcomes.

Podcast added: 23/03/09

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