Kensington High Street, London- secured new tenant on this retail unit for a private landlord client

Kensington High Street

The Challenge

blackstanniland had initially received an instruction to handle a lease renewal on the property, however this shortly afterwards evolved into an agency instruction.

The property is a retail unit in a prime location on Kensington High Street, directly opposite Whole Foods Market. The previous tenant terminated their lease at short notice, having previously entered into negotiations to take a new lease. The challenge was therefore to work closely with our client to secure a new tenant whilst simultaneously minimising void costs and securing a settlement in respect of terminal dilapidations.

Key Points

  • The tenant issued the landlord with a Section 26 notice, and subsequently the parties entered negotiations to renew the lease.
  • The tenant later issued a Notice of Discontinuance terminating their lease at the end of July 2010.
  • We promptly recommended a re-marketing strategy to our client, and arranged for a terminal dilapidations schedule to be prepared and issued on the previous tenant’s.
  • To protect our client against empty rates liability, and to maintain continuity of the landlord’s income whilst a permanent tenant could be found, we provisionally agreed that the existing tenant could remain in occupation beyond their termination date on a monthly licence agreement.
  • Based on our advice, a schedule of dilapidations was prepared and issued on the previous tenant, and negotiations were subsequently entered into.

The Result

After marketing the property, terms were agreed with a new tenant based on a 10 year lease without a break option. The tenant received a rent free period for fitting out, and made some licensed improvements to the shop front. The new lease was completed in mid-August 2010, thereby minimising the landlord’s void period to about 2 weeks.

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For more details contact Jamie Stirling-Aird BA (Hons) MA MRICS:
Tel - 020 7526 2010
Mobile - 0780 307 6502
E-mail - jstirlingaird@blackstanniland.com