21 February 2014

Very local knowledge wins the day in rent reviews

In the end, rent reviews often come down to thorough local knowledge. In two recent reviews, AG&G directors Anthony Alder and David Gooderham were representing a freeholder in one case and the landlord in the other.

Both directors recommended issuing Calderbank letters to their opposite parties before arbitration and both clients agreed.

“A Calderbank letter contains a rent offer that we think is entirely fair. If the other party is the freeholder and thinks the offer is too low, they will not accept it”. But if the arbitrator decides otherwise, the freeholder has to pick the tenant’s bill. The same applies the other way round, if the landlord issues a Calderbank letter,” says Anthony.

“That’s exactly what happened in both cases. Our clients were very happy. Mind you, we did have the advantage of very, very local knowledge. One pub was in Covent Garden, a stone’s throw from our office, and the other was a short walk from David’s house in Hammersmith.”

For further information, contact Anthony Alder on 020 7836 7826 or e-mail anthony.alder@agg.uk.com

AG&G are chartered surveyors specialising in the licensed leisure industry, with the skill and experience needed to value, assess or promote a property not simply as bricks and mortar but as a business. If it involves the price of a licensed premises, its profitability, rental value, investment prospects or value in a dispute, AG&G can help.

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