Rent Review and Holding Over

[Guest repo threat]

09/03/2001 - Lease Commenced 9th March 2001 for a term of 5 years yielding an annual rent of £13,000 payable quarterly in advance. Rent review at end of 1st Year (9th March 2002) and end of 4th Year of term 9th March 2005). The Lease was not contracted out of L&TA 1954.

09/03/2002 – Rent Review increased rent to £14,000pa.

??/??/2007 - Landlord approached Tenant in 2007 to review rent, came up with several spurious valuations based on review dates of 9th March 2005 and a Lease Renewal of 1st June 2007.

Rental comparisons disputed by tenant until advised by Landlord that No 25 (next Door) had renewed @ £18,500 pa with effect from June 2006.

05/06/2008 - Email issued by tenant stating willing to enter into a new lease @ £18,500pa 10 years with a 5yr review and 5 year break clause.

01/08/2008 - Letter issued by landlord enclosing New Lease £18,500 WEF 01/06/2007 and Memorandum confirming rent review and rent £14,500 WEF 01/06/2007.

??/01/2008 – Tenant became aware that No 25 comparable also included 2-3 parking spaces, so net rent for next door is £14,600 after allowing £3,900 cost of 3 spaces.

Neither the Draft Lease nor memorandum was signed by either party.

The Premises were voluntarily handed back to the Landlord in April 2009.

Issues in Point

The Lease of 2001 is a fixed term of 5 years with 2 reviews and makes no mention of anniversary rent review periods other than the only 2 dates contained therein. In a holding over situation, does the tenant become liable for further rent reviews outwith the original lease term. If not, then was the review actually negotiations for a new lease which was never signed and entered into.

As the premises were tendered back to the Landlord Not by formal surrender. Is this a forfeiture of the Lease and does this mean that the landlord loses the right to pursue any outstanding rents ?