Lease Renewal of Hanley Retail Premises

Upon instructions from a subsidiary of S & U Stores plc, the Landlord of prominent retail premises in Huntbach Street, Hanley, Robertsons provided initial advices regarding offering the tenant a new lease.

After our inspection and measurement of the subject premises, collation of comparable market evidence and consideration of the existing lease covenants, an appraisal was submitted to the Landlord setting out the potential for new lease terms including rent.

A Section 25 Notice under the Landlord & Tenant Act 1954 was served on the Tenant within the prescribed timescale, setting out the Landlord’s proposed new lease terms. Negotiations were entered into with the Tenant’s surveyor, who adopted an intransient position having regard to the economic downturn and incentives being agreed by Landlords to secure new lettings on similar property.

The Statutory provisions of the Landlord and Tenant Act 1954 required the tenant to agree the new lease terms or make an application to Court before the expiry of the Notice. In this instance the tenant did not make the Court application in time.

Despite representations from the Tenant to the Landlord and then to the Court that their Court application should be allowed, through the offices of Robertsons and the Landlord’s solicitors, this was denied.

At this stage Robertsons submitted revised advices to the Landlord as to the changed circumstances. Negotiations were revived with the Tenant and as a result new lease terms were agreed, but on terms more akin to the Landlord’s original proposals, including an increase in the retail premises annual rent.

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