I've decided the rent rise- when should you start it

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    I've decided the rent rise- when should you start it

    Hi, I have sorted out a reasonable rent rise, the current 5 year lease ends in 2021, is it normal to start any new rent at the start date of the new/renewed lease or is it started from the day you just decide you want it to start? Thankyou

    #2
    Hi 2018 entry, in the absence of an outstanding (or forthcoming) rent review the rent will be fixed for the contractual term of the existing lease.

    The forthcoming task of lease renewal upon expiry of the existing lease, and the rent payable post expiry of the existing lease, will depend on whether you (I) take steps to renew the existing lease, usually using the s.25 procedure in the Landlord and Tenant Act 1954, or (ii) let the old lease roll forward beyond the expiry date (i.e. simply keep accepting rent).

    The s.25 procedure will allow you to propose a new rent, and the Tenant to make a counter proposal, recourse to an expert or to the Court is possible in default of agreement.

    If you let the tenancy roll (assuming the tenant does not leave at the end of its lease), then there is a "periodic tenancy" what will run on the same terms as before. The s.25 procedure remains available against a period tenancy.

    Andrew Orme

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      #3
      I don't understand the op's question, let alone Mr Orme's answer.

      The op has sorted out a rent rise. Is it a rise from a rent review or start of a lease renewal? I would assume a rent review because the current 5 year lease ends in 2021 which means it started in 2016. Assuming a rent review, the start date is the review date (unless another date is specified in the lease).

      If a renewal then whether the rent riseis backdated to the the expiry of the oild lease is a matter of agreement with the other party. If there is no agreement to that effect then it would start from whatever other date is agreed.

      If LTA54 procedures are involved then the start date is also a matter of agreement unless the renewal is ordered by the court in which case the start date is approximately 6 weeks after the substantive hearing date. Between expiry of the old lease and start of the renewal lease, an interim rent would be payable. The interim rent is either the same as the new rent or a lower or higher amount depending upon whether it can be proved that the rent at the expiry date would have been lower or higher.



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