Our client IAS Smarts occupied an office suite in a converted mill building in Bollington, Cheshire, which was subject to a lease renewal. The landlord proposed a rental increase from £84,506pa to £85,065pa for a 10 year term with a 5 year tenant’s break option. The service charge in the existing lease was fixed at 10% of the rent and the lease stated a floor area of 8,010 sq ft. Altus Group was instructed to negotiate the best rent.
Using our market knowledge and with the protected lease status , we negotiated a rental reduction to £77,400pa for a 10 year lease and a 5 year break option. We negotiated a landlord’s capital contribution of £36,000 and if the break option is not exercised a further contribution of £20,000 coupled with 3 months rent free. We successfully negotiated a complete revision of the previously fixed rate service charge clause to a fair apportionment based on the actual area of 7,744 sq ft rather than the larger area stated in the lease and agreed that the service charge would be capped at 10% of the rent.
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Each property has unique lease terms, and you will always need expert advice to ensure you achieve the lowest rent possible.