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My client purchased a freehold commercial building (the Premises) with a business tenant in situ, demised under a 15-year lease. The original landlord and the tenant used a form of assured shorthold tenancy agreement to record the terms of the tenancy. The agreement refers to the rent being fixed for five years, and states that the earliest date a rent review may take place is 1 January 2015, but it is otherwise silent as to the operation of a rent review. Can standard terms of a rent review clause be implied into the agreement? The original landlord is unable to provide any evidence in relation to the negotiations and discussions that took place prior to granting the tenancy

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Published on LexisPSL on 14/09/2015

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • My client purchased a freehold commercial building (the Premises) with a business tenant in situ, demised under a 15-year lease. The original landlord and the tenant used a form of assured shorthold tenancy agreement to record the terms of the tenancy. The agreement refers to the rent being fixed for five years, and states that the earliest date a rent review may take place is 1 January 2015, but it is otherwise silent as to the operation of a rent review. Can standard terms of a rent review clause be implied into the agreement? The original landlord is unable to provide any evidence in relation to the negotiations and discussions that took place prior to granting the tenancy

My client purchased a freehold commercial building (the Premises) with a business tenant in situ, demised under a 15-year lease. The original landlord and the tenant used a form of assured shorthold tenancy agreement to record the terms of the tenancy. The agreement refers to the rent being fixed for five years, and states that the earliest date a rent review may take place is 1 January 2015, but it is otherwise silent as to the operation of a rent review. Can standard terms of a rent review clause be implied into the agreement? The original landlord is unable to provide any evidence in relation to the negotiations and discussions that took place prior to granting the tenancy

We note that the agreement states that the earliest date on which a rent review 'may' take place is 1 January 2015, and is silent as to any further aspect of any such review. Accordingly, an argument may be raised that the rent review clause is unenforceable on the basis that there is a failure to conclusively confirm that it is intended that there should be a review. Hill and Redman's, Division A, Chapter 7 paragraph 1863 states as follows:

  1. '[the]… current tendency is to try to give effect to the expressed wish of the parties that there should be a review'

  2. 'One form of uncertainty which

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