Enterprise lessee wins arbitration

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21 Feb 2008 20:03
David Morgan
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RE: Enterprise lessee wins arbitration
Ken,I had this dream.A Pubco wants to put up a rent from£43K to £78K based on their estimate/guess of fair maintainable trade that happens to include the tenants special goodwill.I dreamt that to justify the estimate they hired an independent surveyor who always acted for them in rent reviews,and who agreed that £78K was fair,so it became true.My dream featured an almost instant referral to arbitration,the Arbitrator being centrally based in London charged£325 per hour plusVAT.The tenant was but a poor man,the Pubco was rich,their purse was bottomless.Lo! they said,Arbitration is a costly caper the bill to the tenant willbe £10K or more plus the fees of their independent surveyor,for they knew that in that land their word and that of the BDM was law!But the tenant fought the good fight,risked all of the small purse that was his savings and won the arbitration.His compromise offer of £56K won the day.This was balanced against the rent demand of£78K being £22K less than the Pubco wanted but £13K higher than the existing rent.In truth the rent I dreamed should not have gone up at all.I dreamt that the tenant won,but I wondered if the tactical play of the Pubco was the ultimate victor.Mucky business dreams!!

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21 Feb 2008 20:18
Ken Nason
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RE: Enterprise lessee wins arbitration

As a traditional three year rolling tenancy it would automatically be renewable on each three year period end providing the agreement had not been breached.

Unless the condition of switching to a 21 year lease was made conditional on your being in credit when it was proposed then it is they who have not issued the lease and as such you should be able to continue on what I assume is a non repairing tenancy.

They can only change into a lease with your agreement. This is all of course without having sight of the agreement and is a general observation based on landlord and tenanty act compliance

Ken Nason

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21 Feb 2008 20:20
Ken Nason
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RE: Enterprise lessee wins arbitration

David especially when they are wet ones!

Ken Nason

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21 Feb 2008 20:59
wayne massey
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RE: Enterprise lessee wins arbitration
hi dave quick one finally got regional manager to come and see me face to face tommorrow i need beer bad carling gone what my best way nof handleing it without resorting to taking hostages lol

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22 Feb 2008 07:32
Mark Dodds
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[Under Review]
Post is currently under review by moderator

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22 Feb 2008 07:33
Mark Dodds
104 Post(s)
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RE: Enterprise lessee wins arbitration

The article doesn’t go into detail about the case. What kind of P&L did the PubCo invent that supported their rent expectation? How long did it take to get to arbitration? How long after the review date did it run? How much back rent is owed? Presumably there was a Calderbank or two involved? What kind of stress did Roxy have to endure before finding out her rent was only going to go up £1,083 a month? (how much are your monthly mortgage repayments, pubco employees?) And in the end the very objective, hands off RICS appointed arbitrator still put the rent up 33%. And there are many people in this industry who reckon that’s OK? That everyone came off well? What planet do they come from?

Objectively this is hardly justice. In reality it’s a whitewash with a hint of rosy glow. Enterprise will be spitting through broken teeth.

And all the big PubCo’s will be thinking ‘well we got away with it again this time but the game is definitely up’.

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22 Feb 2008 09:12
Stephen Corbett
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RE: Enterprise lessee wins arbitration

And the pubco wanted to put the rent up over 100%. What a joke! Having to pay all of the costs would have definitely stuck in throats..

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22 Feb 2008 11:28
Mark Dodds
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RE: Enterprise lessee wins arbitration
The first part of my post is out for review. I've re read it but can't see what the issue is really.

I said:

"What a joke this industry is" and "I say it again what a b****y joke this industry is" - didn;t name any names, just reflected the information brought up in the original article - like the pubco - which on public record is Enterprise - wanted more than double the original rent and that 13K (or 33%) seems like a big increase for a small pub even after arbitration.

"big bad landlord" I mention as well and I suggested that people might try to empathise with a lessee who opens a letter to find that their rent is goping to more than double.

I'm sure this is not helpful is it?

I really can't see what the problem is - apart from the PubCo's being in the way of course.

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