Any change in circumstances (such as the recent pandemic) is a catalyst for landlords or tenants to seek a change in the terms of a lease.
The ‘restructure’ could apply to rent, varying the demise, removing break option clauses, capping/controlling service charges, etc.
Therefore if you are considering a lease restructure, be clear what you want to achieve before you commence negotiating. When an agreement has been reached and the Heads of Terms signed, a Deed of Variation to the original lease will have to be drawn up.
In an uncertain market, restructuring a lease allows tenants to:
A successful lease restructure requires good (‘market comparables’) intel, proven negotiating skills and a deep understanding of the process. This is something which is best left to professionals.
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