Rent and rent review in commercial leases in Scotland
Produced in partnership with David William John Bell of Harper Macleod LLP
Rent and rent review in commercial leases in Scotland

The following Property guidance note Produced in partnership with David William John Bell of Harper Macleod LLP provides comprehensive and up to date legal information covering:

  • Rent and rent review in commercial leases in Scotland
  • Rent
  • Interest
  • VAT
  • Rent review
  • The need for clear drafting
  • Waiver of right to have rent reviewed late

This Practice Note sets out the law on rent and rent review provisions in commercial leases in Scotland. For contentious aspects of rent and rent review see Practice Note: Recovering rent, arrears and rates considerations in Scotland

Rent

One of the essential common law requirements for a contract of lease to exist is the payment of rent even if this is only a nominal amount.

Rent is usually payable quarterly in advance on the Scottish quarter days but it is not uncommon for some leases where the landlord is an English property company or pension fund, to provide for rent to be paid on the English quarter days (see below) in order to create consistency across the landlord's property portfolio.

Following the recession in 2008, it has become more common for retail tenants to ask their landlords for rent to be paid monthly in advance and many landlords are prepared to agree to this. Such agreements are usually personal to the original tenant and documented by way of a back letter, see Practice Note: Back letters to commercial leases in Scotland

The new Scottish quarter days are:

  1. Candlemas, 28 February

  2. Whitsunday, 28 May

  3. Lammas, 28 August

  4. Martinmas, 28 November

Some leases still refer to the ‘old’ Scottish quarter days which are:

  1. Candlemas, 2 February

  2. Whitsunday, 15 May

  3. Lammas, 1 August

  4. Martinmas, 11 November

Any