Acting for a Scottish financial services business, we were asked to extend and re-structure their lease in Aberdeen. The landlord agreed to the required lease structure of a 5 year term, but with a tenant only break option at the 3rd anniversary of that lease, at a rent of £27,500pa, for which they were willing to agree 3 months rent free.
After negotiations, we preserved the required lease structure, but reduced the rent to £18,000 pa and increased the rent free to 12 months, 3 of which were “payable” if the break was not exercised. The advice provided allowed a saving from the landlord’s original proposal of £42,000 to be negotiated over a 3 year period over a relatively small rent.
