We have expertise in reviewing the rent payable under the terms of a residential or commercial lease, which may change over time.
A lease is the grant of a right to the exclusive possession of land for a determinable period of time, so it’s both an estate in land and a contract between landlord and tenant.
The rent payable under a lease may be the market rent of the property or it might be nominal (e.g. peppercorn rent). Rent need not consist of money, but it must be certain or at least ascertainable.
Commercial leases are usually granted at a market rent – typically an annual sum payable in advance which, in practice, is usually paid in four installments on the Quarter days. Most commercial leases include a provision for the rent to change over time, ensuring the landlord continues to receive a rent that reflects the true value of the property.
Even long leases granted at a premium usually allow the rent to increase over time, though these changes are less likely to reflect market values.