A Rent Review event in a lease requires specialist advice. Traditionally leases provided for an ‘upwards only rent review’ where the rent could increase or remain at the passing level. Since the introduction of Section 132 of The Land and Conveyancing Reform Act 2009 which came into effect on 28th February 2010, new leases are prohibited from including upwards only provisions with most providing for rent reviews to open market rent.
Rent reviews can also present an opportunity for landlords and tenants to review their contractual relationship and may provide an opportunity to re-negotiate lease terms. This is particularly relevant at the moment in the context of COVID and the impact the Pandemic has had on many businesses.