The Cost of Failing to Calculate the Rent

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Negotiated in advance

The other negotiated amendment in the reversionary lease which is relevant here is the term commencement date. The reversionary lease was dated 28 December 2005 with a term commencement date of 25 March 2010. The parties could not know the market rent so far ahead and therefore the reversionary lease provided that the initial rent would be the greatest of:

(a) the rent reserved by the lease which had just expired at the end of its term;

(b) the market rent on 25 March 2010; and

(c) £1.2m per annum.

 

Ambiguous wording

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Clear drafting

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