Private Professional Client
The client occupied one floor of 4,880 sq ft within a modern multi-let office block.
We were asked to advise the client on the renewal of the lease under the provisions of the Landlord & Tenant Act 1954.
After inspecting and measuring the offices, we prepared a full report setting out our opinion of the rental value of the offices for the purposes of the renewal. Our conclusions were that the passing rent was in excess of the rental value and that renewal terms should be negotiated seeking a reduction in the rent.
After a period of negotiations with the surveyor acting for the landlord, we were unable to reach an agreement and so an application was made to the court for the grant of a new lease.
The landlord refused to agree a rent which we considered reflected a market rent and therefore the litigation process continued.
In order to avoid the costs of a full-scale trial, the parties agreed to refer the matter to PACT. This involved agreement on the terms of a draft lease with the exception of the rent which was attached to a Consent Order of the Court.
This allowed the matter to be referred to arbitration rather than the court, allowing a more cost-effective dispute resolution process.
The arbitration proceeded in the usual way save that a point of law arose upon which the client sought advice of leading Counsel. An Expert Report and Replies were prepared and eventually, the arbitrator made an award, resulting in 15.2% reduction in rent for the client.
The case was live between 2014 and 2015.