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Dear Sir/Madam,
Cracking the code
There is a lot of talk at the moment about a controversial Code. Its central theme is about antagonistic, costly, power struggles between two sides, both with long-established positions. Often, the side with the biggest clout is the winner.
No, we’re not talking about the Da Vinci Code, which challenges basic Christian belief and orthodoxy.
 We’re talking about the Commercial Lease Code, which is not currently in the news, but you do need to be aware of it.
This Code comprises 23 recommendations that reflect current best practice in negotiating terms of the lease between landlords and tenants. The recommendations were put together by a working party comprising representatives of landlords, tenants and the RICS.
The Code was sanctioned by the Government, however, they seized on one of the recommendations and politically manipulated it in an effort to ban upward-only rent reviews. As leases are getting shorter anyway, and there are fewer reviews the Government dropped this. But in March 2005, Yvette Cooper, MP, stated that they would review subletting and assignment terms instead!
Whether you are a landlord or a tenant, how the terms of your lease are interpreted can have a substantial impact on the rent valuation.
As Chartered Valuation Surveyors, we are ideally placed to find out the truth!
This is part of a regular series of topical articles provided exclusively by RDN Surveyors. If you would like any further information or add your own comments please reply to this email or contact Roger Nelson on 0800 902 0466
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31 Holmesdale Road, Reigate, Surrey RH2 0BJ
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