The future of disrepair - legal update
With claims for disrepair likely to increase, we examine…Read More › ›
Lease re-gears: your flexible friend?
Tenants – feeling that your premises are over-rented or that your lease is too inflexible to meet your current and future operational needs?
Landlords – concerned that your prized tenant’s lease is soon to expire, and you fear that they will relocate, leaving you a rental void plus primary liability for business rates?
Croftons Commercial Real Estate team could help you access the benefits of a lease re-gear. Contact Bob Agnew by calling 0161 214 6180.
A lease re-gear could be your solution, delivering significant benefits to both landlords and tenants and particularly attractive during a period of economic downturn.
Tenants may be able to negotiate a new or varied lease, incorporating a rent holiday to ease cash flow and could achieve flexibility on exit strategies by agreeing suitable future break provisions.
Landlords have an opportunity to reduce/eliminate the future risk of a void unit. In circumstances where one of the fundamentals of investment value is linked to the duration of any occupational lease, a re-gear could work to preserve the investment value, with obvious benefits for either selling a tenanted investment or seeking to raise finance against the asset.
Why not just wait until lease expiry? Well, for tenants it is possible that deals which can be negotiated in the current market may not be on the table at lease expiry. For landlord’s a re-gear gives an opportunity to take early action to reduce or eliminate some key risks to the value of the reversion.
Croftons is the trading name of Croftons Solicitors LLP, a limited liability partnership registered in England and Wales with number OC343375. The term ‘partner’, if used, denotes a member of Croftons Solicitors LLP or a senior solicitor of Croftons Solicitors LLP with equivalent standing and qualifications. A full list of members is open to inspection at the office. Croftons is authorised and regulated by The Solicitors Regulation Authority (SRA) number 508041. Croftons has its principal place of business at The Lexicon, Mount Street, Manchester, M2 5FA.