Leasehold Advisory Services (LAS)
The opportunity to use LAS occurs when the lease has a break option or is due to expire. This provides the parties with an opportunity to revisit all the previously agreed lease terms and costs.
Under the terms of the lease, the occupier will have the opportunity to walk away from the property in order to achieve better commercial and financial terms. The occupier will have the opportunity to test the market for a better deal, whereas the landlord has the hold over the tenant when it comes to exit costs and the prospect of the tenant having to fit out a new space. Careful consideration of the market options, pricing, covenant strength, preferred lease terms, assessment of the negotiating position of both parties and proper financial analysis of all aspects of a proposed deal are vital to securing the best possible financial outcome.
Detailed consideration of the lease terms is critical to ensure there are no unwelcome surprises at rent review, break options, throughout the lease or at expiry.
The potential to substantially improve the commercial terms and/or financial position of either party at lease regear is considerable. Good quality advice is needed to ensure all the angles are fully considered, financial aspects fully tested, the business need clearly identified and the property tested to ensure it meets the business need in both the medium and long term.
Assistance with lease renewals
The end of a lease term does not necessarily mean the end of your tenancy. With a plan around your lease renewals, you can continue to operate from your current premises without undue disruption. It may not always be possible to renew your lease, in which case having enough time to use our lease acquisition services would be advantageous.
To renew your leases effectively, follow these steps:
- Assess your business needs and future plans.
- Review your current lease terms.
- Investigate current market trends and transactional evidence
- Negotiate terms with the landlord.
- Finalise the lease renewal.
- Document the renewed lease agreement.
Understanding Tenancy Break Clauses
A break clause offers an opportunity to terminate the lease before its official end date, provided certain conditions are met. It acts as a safety net, offering flexibility in uncertain times. It is important to check whether the break is in the tenant’s favour only, or mutual.
The break clause offers an opportunity to exit a lease on a specific date in the event of business distress, or if the business has expanded or contracted to such a level that the existing property is no longer fit for purpose. It also provides an opportunity to re-gear the lease if the intention is to remain in the building, by negotiating the removal of the break in return for improved lease terms.
Given the highly litigious nature of break clauses, we would always recommend your lawyer serve the notice to ensure it is validly served, but only once you have taken advice from us.
Why Choose Our Leasehold Advisory Service?
Understanding the complexities of leases, property fundamentals and the vagaries of local and national property markets, combined with effective negotiation of key commercial and financial terms within the lease is best handled by a Chartered Surveyor/Property Consultant who engage in such negotiations every day. With three decades of experience, MAPC can guide you through the complexities of lease negotiations.
WHAT OUR CLIENTS SAY
“Mark has worked with Edrington Group for nearly 20 years in which time he has provided a full range of property advice across the UK, Europe, Middle East, US and Asia. This has involved him acquiring and re-gearing leases for our various offices, managing fit outs, resolving rent reviews and generally doing everything and anything required for our leased offices. ”
Chris Hendry, Head of Indirect Procurement, Edrington Group
"Mark has supported us with managing our UK and Nordics depot and office property portfolio for circa 20 years. He has interacted seamlessly with our external legal advisers and colleagues at all levels and functions across our business to help us achieve best possible outcomes."
Louise Harrison, Head of Legal, Aggreko Europe North
“Mark helped us succeed in effecting sequential moves of offices in Glasgow, Edinburgh and Belfast; each against a background of challenging timescales, an uncertain space market and a re-defining of the office environment. His market awareness, commercially minded outlook and the ability to support across a number of specialisms undoubtedly contributed to us achieving that efficiently and importantly, whilst we maintained business as usual on behalf of our Clients.”
Scott Ewing, Regional Director, Gleeds
“We have been working with Mark for more than 20 years. During that time he has helped us negotiate initial office leases in Glasgow, Liverpool and Aberdeen, renegotiate office leases, completed rent reviews, carried out market analysis studies to assist us when looking for alternative locations, coordinated dilapidation negotiations and, also, managed a recent office refurbishment for us.”
Eddie McDermott, Finance Director, V Ships UK Ltd
“Mark has worked closely with our business for over 20 years, having been involved with everything to do with various office leases, across various locations, as we have moved through the growth and contraction phases of business cycles. We find he has been an excellent business partner and is always able to give sound advice, provide a useful sounding board as we decide how to arrange our various leases, before delivering what the business needs. ”
Al Arnot, Finance Director, Concept Systems Ltd
"We have worked with Mark for more than 5 years, since he was
introduced to us by a trusted adviser. We have multiple offices, each
with different issues and needs. Mark understands our business really
well and has the expertise and experience we need to advise us on all
aspects of our tenancies.
We regularly refer Mark to our clients."
David Smith, Managing Partner, Henderson Loggie
"We asked MAPC to assist us in moving from a 3-storey, compartmentalised office into a single open plan unit on the edge of Edinburgh city centre, with the opportunity to grow or shrink as required. Mark managed to satisfy all our objectives with finding the new office. In addition, he introduced us to a designer for our fit out and managed the whole project, which included procuring a contractor and other consultants to help design and build what we needed."
David Miller, Managing Director, Alpha Data
"I have known Mark in a professional capacity for a number of years,
most recently working with him on a complex rent review case, where he
was directly advising a corporate client.
Mark's knowledge of the commercial property market is extensive across all market sectors and I would highly recommend him for all lease advisory work, particularly rent reviews, lease renewals and lease restructuring, where you may be aiming to add value to existing properties or portfolios."
Eric Thomson, Thomson Property Consultants Limited
"I have worked with Mark for seven years; simply, I would not attempt a deal without his knowledge, insight and intelligence. Mark has your back."
Neil McCallum, Managing Director, Critiqom
"Mark has provided full occupier services to every business that I have been associated with- his ability to report efficiently on niche markets providing diligent, conscientious and professional advice in the most thorough manner, makes decision making more informed and painless. His contacts and specialist knowledge are extensive and lead to an ‘over and above’ service."
Joseph Madden, Director, PMP
"Mark has worked with CDN through several reincarnations providing advice primarily on rent reviews, but also considering potential relocation options. He has good knowledge of the property market, is technically very good, continually keeps us up to date and is a tenacious negotiator, who has always delivered good results for us. We are pleased to have him as part of our wider team and would have no hesitation in recommending him to others."
Gayle Watson, Chief Executive, Scottish Colleges.
"I have worked with Mark for a number of years, where he has acquired (sometimes substantial) offices for us, re-geared leases and undertaken rent reviews in Aberdeen, Glasgow and Newcastle. Despite various challenges arising, he has provided good advice, with good knowledge of the markets, and always been on hand to resolve problems. I have been impressed with his service getting the best deal possible, have enjoyed working with him and am happy to recommend his service to others."
Joe Hannon, Head of Real Estate Services, AMEC Foster Wheeler plc