The recent case of Bello v Idealview Ltd is a timely reminder that a landlord can usually trigger a rent review even after a substantial delay.

In this particular case the tenant, Bello, had purchased the lease at auction in 2005.  The lease had originally been granted in 1969 for a term of 50 years and provided for a single rent review on 24 March 1994.  The review provision stated that in the event of a late review, the existing rent would continue to be payable and that any uplift would become payable on the first quarter after the determination of the review.

In March 2006, Idealview Ltd purchased the freehold reversion of the lease and shortly thereafter triggered the rent review, claiming the new rent as from 25 March 1994.  The new rent was finally determined in August 2007, following an arbitration.

Bello sought to argue, amongst other things, that the arrears were time barred.  The Court dismissed this argument on the basis that the arrears did not properly fall due until after the determination (which occurred in September 2007) and reaffirmed the general principles concerning rent review; namely that:

(i) unless there is an express provision in the lease, time is not of the essence; and
(ii) even where there is a significant delay by the landlord, this will not deprive it from enforcing its contractual rights under the lease.

Advice for tenants

• If a review is outstanding and you want finality on the issue, either pursue the review yourself or, if that is not possible, serve notice on the landlord making time of the essence.
•  When taking an assignment, check whether any rent review is outstanding.  If yes, ensure you get an indemnity from the outgoing tenant.

For more information on these issues please contact

Mario Betts

or your usual Lewis Silkin contact