Avoidance of a substantial repair bill
The property was originally let to English Heritage for a 15 year term from 1999, with a tenant break in 2009. With approximately three years unexpired until the break, we were initially instructed to deal with an outstanding rent review which had not yet been triggered.
The consequences of the repairing covenants for such a building could have meant a substantial repair bill at the end of the tenancy, which English Heritage wished to minimise. The repairing covenants in the lease also had a depressing effect on the rent at rent review which the parties did not originally intend.
Utilising our in depth knowledge of the York office market and having previously completed an open market letting of a separate Grade II listed building on the same street, we were able to advise on the detailed aspects of the rental valuation at rent review, incorporating the effect of the repairing covenant in the context of the building specification and condition.
Long-term certainty of income and tenure
Having brought our Building Consultancy team on board to provide specialist dilapidations advice on the effect of the repairing covenants within the lease, we were able to successfully negotiate acceptable terms for a surrender of the existing lease and the grant of a new lease with the landlord instead of implementing the rent review.
Not only did this deliver a significant rental saving to English Heritage, it ultimately provided long-term certainty and peace of mind for both landlord and tenant, who had secured occupation for until at least 2017.