Lease Advice

What is Lease Advice?

Lease advice is typically provided by Lease Consultants who are engaged to act on behalf of either a landlord or a tenant to negotiate lease renewals; assess/negotiate lease terms; conduct rent reviews; provide leasehold due diligence advice if a client is looking to acquire or dispose of a leasehold property; and advise on many other lease related matters which can be covered under the umbrella of lease advice.

Lease advice can also be provided by Lease Consultants to provide Expert Witness advice where third party dispute resolution is required.

Commercial property leases can vary significantly and it is very important to engage a Lease Consultant to provide expert lease advice to review, understand and interpret the various lease terms. A Lease Consultant can provide lease advice for all different types of properties including offices, retail, industrial, public sector etc.

To provide accurate lease advice a Lease Consultant will need to have a comprehensive understanding of the relevant market, how the form and condition of a property may impact the lease advice which is being provided, and also have a detailed knowledge of the impact of specific lease terms/lease terminology.

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What can Lease Advice help me with?

There are many different aspects to lease advice that a lease consultant can assist and provide reasoned advice under.

The common areas and services that are included under the umbrella of lease advice is as follows:

Assisting with rent reviews – this is where a lease consultant will review market conditions and advise either a landlord or tenant on the level of rent that should be agreed and included within a lease document;
Providing advice in relation to lease renewals – this comprises a comprehensive overview of all lease covenants to ensure that the revised terms meet the client’s expectations and requirements, not just in relation to rental levels;
Expert Witness/Dispute Resolution – if negotiations have become protracted then a lease consultant can be engaged to provide unbiased lease advice to assist with settling the dispute. Where matters have been taken to court then expert lease advice can be provided on an impartial basis.
Assessing lease restructuring opportunities – this advice can be given at any time and does not need to align with a lease renewal or rent review. The lease consultant will provide lease advice in relation to a number of matters including: potential extension, surrender, renewal, or re-gearing.
Providing lease due diligence – lease advice where the intention is to acquire or dispose of an asset held on lease terms in order to ensure that liabilities are reasonable and that you’re not being left with significant obligations.
Lease expiry or break option advice – specialist lease advice can be given during the lease term to assist with managing and understanding the obligations at the end of a lease term or at the time of a lease break.

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Valuation advice associated with rent – lease consultants can provide valuation advice based on the rental income of a property.

Each instruction can be relatively bespoke and it is therefore recommended that a lease consultant is engaged early on to discuss the specific lease advice which is required.

Lease consultants often call upon assistance from commercial building surveyors and valuation surveyors in order to assist with clarifying certain matters specifically in relation to schedules of dilapidations and commercial property valuations.

What are the benefits of obtaining lease advice?

Reliable and robust lease advice will ensure that either a landlord or tenant will be well advised in all matters relating to lease obligations and rental values. This will mean that tenant’s are suitably protected from being hit with a large bill at the end of their lease term, and will not be paying over market value for their rent during the lease term. Alternatively, it will ensure that a landlord’s asset is adequately protected and safeguard the landlord from having to expend significant figures repairing a property on lease expiry. It will also ensure that a landlord is obtaining the best value and return from their asset.