Massive rent increase, horrendous new landlord

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    Massive rent increase, horrendous new landlord

    Have a shop in Liverpool that was a commercial lease with the council. They have recently handed over the property to a private company in partnership with themselves. Sods law, i had a rent review just as this took place.

    My landlord has put my rent up by an astonishing 38%, citing this is what they want. Ridiculous. They have cited various shops in the area are paying similar rents - these are usually one year rents, and tennants move out, where as i have a 15 year lease. They also are only selectively providing me with information for certain shops, rather than giving me an across the board detail of what rent who is paying on my road. For me, this is a clear indication a fair few who haven't had a rent review are paying alot less. I don't have a relationship with nearby shops to simply walk in and ask what rent they are paying. Contacted a solicitor and he's pretty useless - as he says i signed up for a rent upward review, and the alternative would be to go to a RICS valuation, not RICS arbitration - who could set the rent even higher. This would cost me thousands too, as i will have to share the costs with the landlord.

    They are unrepentent and very determined to bust my guts, and not really into negotiatiating. They have me by the balls, as i have my business set up, and fittings and fixtures set up.

    Then a small alteration to my shop, which involved removal of a support beam than comes down from the ceiling into the ground - i imagine this would be classed as a structural allteration. The fees are ridiculous. Essentially the fee's are more than the work !!!!!!!!

    They want surveyor fees of £650, then building surveyor fees of £120 an hour, and then want to alter my license (?) for a further £650 !!! Add VAT on top of this too. It's a massive headache as the cost of removing the beam was only £1050 !!!!

    Just looking for thoughts, feedback - i can barely eat and cope with what is going on.

    #2
    Offer them half the increase. (If they're anything like me, they'll have asked for about double what they thought they would get.)

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      #3
      Originally posted by JordanNite View Post

      They want surveyor fees of £650, then building surveyor fees of £120 an hour, and then want to alter my license (?) for a further £650 !!! Add VAT on top of this too. It's a massive headache as the cost of removing the beam was only £1050 !!!!
      That's the price to check if the building is safe and wont fall down ( costing you millions to rebuild ) and no movement of the building has occured, and also they can, and should demand, at your cost, the supporting beam be replaced.

      It's called a supporting beam for a reason !

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        #4
        You need to have a word with a commercial landlord and tenant specialist surveyor.

        Comment


          #5
          I don't understand what the problem is. Rather I do understand, but…

          You signed the signed so presumably you knew or were advised on what you were letting yourself in for?

          With a rent review, the landlord proposes a rent so if you don't agree then you negotiate. If the landlord is unyielding then the lease contains a dispute resolution procedure. True, it can cost a lot to get a review resolved but there's a lot a stake. For a tenant's it's the business livelihood. For the landlord's it's improving the capital value of the investment, as well as providing evidence for rent reviews elsewhere.

          With alterations where the landlord's costs are payable by the tenant, again the costs can seem disproportionate but that's the nature of property. If you've already done the alteration and did so without the landlord's consent then you might be in in breach of covenant unless you can show that the landlord is deemed to have acquiesced. If you haven't done the alteration then why ask for it if the costs are disproportionate.

          As someone has suggested, it's advisable to instruct a commercial property surveyor to act for you. That'll cost you as well but could be cheaper in the long run.

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