Home And Away: Landlords And Tenants Settling
For A ‘Draw’?
Home in sport is
normally an easier territory for the proprietor to win rather than the
visitors… However, currently in the London office market, the proprietor may be
more willing to settle for an effective ‘draw’ with its ‘visitors’ by
re-gearing leases. This has developed as both sides are preferring to take the
safe option, and instead of allowing leases to run-down, they are entering into negotiations to re-gear the lease
to ensure certainty for the near future.
In
a strong market - a landlord favourable market - this type of deal is very
unlikely, but today it is a sensible option for occupiers to consider over the
next few months. This method is a good way for a tenant to extend their lease
length, revise it, and alter the passing rent.
Therefore instructing a surveyor to ‘test the water’ with a landlord with a new proposal might make good commercial
sense if you have no intention of moving and
wish to have more certainty on your property outgoings, for the next few years.
Business Rates: 66.9% Hike At The Home Of Cricket
BUT 7.1% Decrease At The Emirates…
Another area for occupiers to think
about is that the 2017 Rating revaluation will be coming into effect in on 1st
April next year. Whilst we do not know what the official changes are yet, the
draft released in September 2016 has suggested uplifts in Business Rates across
central London. Nationally there are going to be winners and losers and the
recent draft has revealed that in London adjustments have been made in areas
where there has been substantial rental growth. Do contact us if you want to
find out what is going on!
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