Rent review process on a lease that has been held over - what is the legal position?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Rent review process on a lease that has been held over - what is the legal position?

    A friend has asked me a question about a commercial lease and I am not confident on the answer. He has a fixed term commercial lease which finishes at the end of this year and contained the procedure for two rent reviews to take place on two set dates during the term of the lease. It was not contracted out of the Landlord and Tenant Act 1954 but it is now too late to apply to court for lease renewal. The lease contains no provisions as to what governs the lease if it just rolls over and my friend just keeps paying the rent. The landlord has not responded to any of his communications over the last few months, deadlines have passed and my friend now does not know what will happen at end of lease in 2 months. As far as I can see the lease doesn’t contain anything that talks about the next rent review period if the lease rolls over. Does anyone know what would then govern the rent review period going forward? Is there any implied law in this situation? What are the pitfalls he should be aware of in this regard if he does just let it roll? Please can somone point me in the right direction of anything to read on this. Thanks very much.

    #2
    On expiry of the contractual term, the lease enters the holding over period. Holding over under an expired lease continues until the tenancy is brought to an end by either party. Provided no statutory. notice has been served to end the existing lease, it is not too late to apply to court for lease renewal - because it is not necessary for statutory notice to end the lease on the contractual term expiry date: notice can be given at any time after the contractual term expiry. During a holding over period, any outstanding rent review can be implemented, provided there is no wording or indication in the lease to the contrary.

    Comment

    Latest Activity

    Collapse

    Working...
    X