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Lynton House, 7-12 Tavistock Square, London, WC1

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BSG Valentine are the accountants of The Lorenz Consultancy and in April 2007 we were instructed to handle their lease renewal from October 2009. They occupy some 8,600 sq ft of un-modernised offices on the 1st floor.
The Landlords were in the process of an extensive refurbishment of the whole building with the exception of the 1st floor where the Tenant had renewal rights, and BSG Valentine preferred to move into the refurbished lower ground floor comprising some 9,000 sq ft so the acquisition of the new space was linked to the surrender of the existing – the Landlord giving substantial inducements for the benefit of being able to take back the 1st floor to refurbish it.

Dilapidations

Dilapidations is a term used when referring to the condition of commercial property. It means the same as disrepair and is tied in with the repairing and decoration obligations in the lease agreement.

Dilapidations and schedules of dilapidations have serious financial implications for commercial (business) tenants, so they should ensure that they fully understand these implications and take steps at the outset to minimise their liabilities before signing a commercial lease.

Almost every Landlord and Tenant relationship involves dilapidations. An end of term Dilapidations claim from a Landlord is always a bombshell to the recipient Tenant. A Tenant’s reticence to carry out necessary work can land them not only with the cost of the works but also continued rent liability.

The Lorenz Consultancy have specialised for many years in dilapidations claims for Landlords and Tenants to the extent that we even advise Clients on Dilapidations issues when drafting or signing leases respectively.

The Courts are there to protect both sides in the event of dispute, and our expertise in this field usually allows us to achieve negotiated settlements to mutual satisfaction of both parties.

So, in short, we specialise in substantiating claims for Landlords and minimising payments or the cost of works for Tenants. We even supervise works where financial settlement by negotiation fails.

Whichever side we are acting for, we can virtually guarantee getting a “best result” out of any dilapidations negotiations.

Lease renewal

Commercial Lease Renewals are even more contentious than Rent Reviews as the Tenant has the chance of walking away from the commitment. Rent and other terms are determined via the Courts rather than an Arbitrator.

There are a host of issues which need to be negotiated, such as Term, Break Clauses, and Covenants of the Lease to name but a few such as:-

  • Term of lease
  • Break clauses
  • Lease covenants
  • Rent free periods
  • Redevelopment clauses

A full understanding of Case Law associated with the Landlord and Tenant Act 1954 and the Arbitration Act 1996 is essential. In the case of lease renewal, we advise on procedure to be adopted on serving notices and counter notices.

We have substantial experience in contended Lease Renewals, where Landlords are refusing renewals and Tenants want them and vice versa – the Landlord may offer a renewal and the Tenant may vacate, leading on to end of term Dilapidations negotiations.

The Lorenz Consultancy has a proven track record in this complex field, working for both Landlords and Tenants offering a highly professional and thoroughly researched approach, supported by an extensive database of rental evidence and our substantial experience in contested lease renewals, which can often be used to a devastating effect.

Rent Review

The right rent, which should be paid for a Commercial Property, is based on the interaction between its’ detailed specification, location, comparable premises and, perhaps most importantly, its’ lease terms.

The Rent Review Team specialises in analysing all aspects and has detailed knowledge of Case Law which can be so valuable in proving whether a lease is advantageous or disadvantageous to the hypothetical Landlord or Tenant, thus affecting the rent paid.

The Team handles literally hundreds of negotiations in every sector of the market every year, and the more we handle, the better the service we provide.

We have no fear of Arbitration or Litigation when it enables us to achieve rewarding results for our Clients when dealing with rent reviews.