landlord wants to increse my rent

N

neassa

Guest
Myself and my wife have a small retail premises,we have a ten year lease on our premises,the previous buisness had closed down some months before we opened ,our first landlord sold both the site and our lease to a new owner last year,a rent review was due last year and we recived a letter from an estate agent to say that he was valuing the primesis at about 60% more rent,in the last six years we have repaired and replaced anything that was needed as our old landlord woud not spend any money on it.what can we do as any rent incress would put us out of buisness.
The last 12 months in our town 14 small buisnesses have closed down and only three opened employing only 3 people.

Any help or advice would be greatly appricated.
 
AFAIK your rent is subject to a third party review and can only be increased by the market value. The upgrades you have made will also be taken into account if they have increased the value of the property.
I agree with ClubMan; talk to your solicitor, if you don't have one then get one.
Vanilla is a solicitor (or is impersonating one:p) so take her advise.
 
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Presume you have an FRI lease. In most rent review clauses you can nominate an arbitrator to review the rent in absence of agreement with landlords valuation. Check the terms of your RR clause or obtain advice from your solicitor. Problem with lots of these RR clauses is that they are upwards only clauses which I personally dislike.
 
I know why you put the smiley Purple- why would anyone want to impersonate a solicitor?!
 
LOL. Ah go on then, I forgive you. God knows I've had worse insults over the years. Mainly on AAM. Why do I still post here?:)
 
how much would arbitration cost, and can any auctioneer do it.
 
Arbitration is supposed to cost less than the court process which is why leases give this option first. As to whether anyone can do it, that will depend on the terms of your rent review clause. So for eg a clause might say that in absence of agreement, you will have to propose three different potential candidates and the landlord will have to agree on one.
 
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