ABSTRACT
Uncertain and changing trading conditions experienced by business firms may eventually lead a more general acceptance of upward or downward rent reviews, tenants and their professional representatives need to be more assertive. The lease may define the use to be carried on in terms of the tenant’s business, which may have repercussions on rental value at review. In Sydenham, J.T. & Co. Ltd v. Enichem Elastomers Ltd 1986, the tenant claimed that the user clause which restricted the use to the business he carried on would affect the rental value. A assumption may be that the hypothetical tenancy is with vacant possession, removing the effect of the tenant being in occupation. The lease may include assumptions that the tenant is able to recover any value added tax paid on rent and other charges in full. Landlords, tenants and their valuers need to know what is the right basis of valuation without recourse to lawyers.
