Module 2 · Chapter 4

Rent Review

A ten-year lease resets its rent partway through, at a rent review. This chapter shows how the lease tells a surveyor to value the floor, and why the rent here can only rise.

≈ 10 min read 8-question test

In this chapter

  • Why a ten-year lease has a rent review
  • How the lease tells a surveyor to value the floor
  • Why the rent can rise but not fall, and what the tenant got for that

4.1Rent review in one paragraph

Linnet's rent of £60,000 a year is the market rent for the floor in 2026. The lease runs for ten years, and nobody knows what the floor will let for halfway through. So the lease has a rent review: on a fixed day, the rent is reset to what the floor would then let for. That day is the Review Date, five years into the term (the Particulars).

The review changes one number. Clause 4.1 reviews the Annual Rent under Schedule 2, and nothing else. The term, the repair obligations and the service charge stay as they are.

Key point

A rent review resets the rent and nothing else. In this lease the review can raise the rent, but it can never lower it.

REVIEW DATE AND BREAK DATE YEARS 1 TO 5 £60,000 a year the rent agreed in 2026 YEARS 6 TO 10 the greater of £60,000 and the market upwards only · clause 4.2 2 November 2031
The ten-year term. The day in the middle is both the Review Date and the Break Date.

Also in this chapter

  1. How the lease values the floor
  2. What the surveyor assumes and leaves out
  3. Why Linnet's fit-out is left out
  4. Why the rent can only go up
  5. What Linnet got in return
  6. When the two sides do not agree
  7. Your job

Preview

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