Commercial property rent review disputes—Scotland
Produced in partnership with Alistair Drummond of DLA Piper , Gavin Deeprose of DLA Piper and Kirsty Gray of DLA Piper

The following Property Disputes practice note produced in partnership with Alistair Drummond of DLA Piper, Gavin Deeprose of DLA Piper and Kirsty Gray of DLA Piper provides comprehensive and up to date legal information covering:

  • Commercial property rent review disputes—Scotland
  • Need for rent review
  • The process
  • Waiver of right
  • Review criteria
  • Assumptions
  • Disregards
  • Disputes
  • Arbitration
  • Expert determination
  • More...

Commercial property rent review disputes—Scotland

This Practice Note provides an overview of rent review clauses in commercial leases and their operation. It also provides an outline of the procedures used for settling rent review disputes by way of arbitration or expert determination. It does not cover agricultural rent reviews for which, see Practice Notes: Rent review under 1991 Act agricultural tenancies in Scotland and Rent review under 2003 Act agricultural tenancies in Scotland.

Need for rent review

Rent reviews allow the adjustment of commercial rents to the market level at the date of review. They are most commonly seen in commercial leases of a longer duration.

Rent reviews take place at the intervals agreed in the rent review clause in the lease. Typically, this is at periods of three to five years although this can vary.

In addition to specifying the review dates, the lease should specify the method which is to be used to undertake the review. There are several possible methods, which are discussed below, however the most common method is the open market rent basis. For further information, see Commentaries: Different types of rent review: Stair Memorial Encyclopaedia [481] and Need for a review clause: Scottish Law of Leases [12.3].

Care must be taken when drafting rent review clauses in order to ensure that they are enforceable. An example of a case where a rent review clause

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