A Landlord or Tenant’s property requirements can change during the term of the contracted lease and it can be beneficial for both parties to achieve their goals by re-gearing.
For example, a Landlord may be prepared to accept a reduced rent in exchange for the Tenant taking a longer lease term and for forfeiting a break option. Similarly, a Tenant may negotiate a realignment of a break clause, the introduction of a rent free period or capital payment for extending the lease.
Re-gearing can occur at anytime although events such as a rent review or break date represent an ideal opportunity. The ability to identify a situation and achieve the end result requires a detailed knowledge of lease renewal procedure, the property market and Landlord & Tenant contract law.
We have been very successful in increasing many Landlords’ return from an investment and conversely reducing many Tenants’ liabilities through re-gearing.
By re-gearing your lease we may be able to achieve the following:-
- A reduced rental in exchange for a longer lease
- A rent free period in exchange for removing a break
- Removal of Dilapidations liability in exchange for a new lease
- An increase in rent for varying a user clause
Lease re-gearing can significantly benefit your business.