OUR REPUTATION, INDUSTRY EXPERTISE AND NATIONAL COVERAGE IS ONE OF THE BEST
IN THE TRADE
We offer a range of valuation and professional services dedicated to our core client base of tenants, lessees and operators of only licensed and leisure properties in England & Wales. Here at Morgan & Clarke, we also like to help on a more personal level, offering; legal insight, guidance and expert tips. Unlike other Chartered Surveyors, we are only on the side of the tenant. Or in some cases, representing small, private Landlords. Our registered enterprise office is in the UK in central London, with satellite offices in both Gloucestershire and East Sussex.
What are our specialisations?
Click on each service above to take you it's website page.
Our core property experience includes:
Night Clubs and Discos
Read on to see some common questions asked by our clients.
Frequently Asked Questions
What is a Section 25 notice?
Generally, the Pub Co/Landlord serves a Section 25 notice a minimum of six months and a maximum of 12 months prior to the end of the lease. A Pub Co can issue a Section 25 notice to agree or oppose a renewal. These notices are often referred to as either ‘non-hostile’ or ‘hostile’ Section 25 notices. The issuance of a Section 25 notice will either set out the agreement of any renewal or the opposition of such renewal.
Licensees can pre-empt their Pub Co landlords by serving their own Section 26 notices to request a new tenancy/lease term. The Pub Co must, within two months of the tenant notice, provide a response in agreement or notice of opposition to an application to the court for the grant of a new tenancy.
What are the differences between a ‘non-hostile’ or ‘hostile’ Section 25 notice?
- ‘Non - Hostile’ Section 25 Notices:
A ‘Non - Hostile’ Section 25 Notice will set out the terms of agreement concerning the lease renewal, which is not being opposed.
- ‘Hostile’ Section 25 Notices:
If the Pub Co landlord wishes to oppose lease renewal, their notice will contain mention of grounds A to G (see below) for which the new lease term is being refused. Otherwise known as a ‘Hostile’ Section 25 Notice.
The 1954 Landlord & Tenant Act stipulates several legal grounds upon which a landlord can oppose lease renewal;
A) If the property is, or has persistently been, in a state of disrepair
B) If there have been persistent delays in paying rent
C) If there have been any other substantial or persistent breaches of the lease during tenancy
D) If the landlord can provide alternative premises for the tenant to occupy
E) If the lease is part of a larger premises where the landlord can obtain better rental return, for example, by letting the premises as a whole.
F) If the landlord intends to redevelop the property
G) If the landlord intends to occupy the property themselves
What is statutory compensation?
With a standard protected tenancy, statutory compensation is only made available if the tenant in occupation is denied the opportunity for exercising the right to automatically have a further term of years.
If a hostile Section 25 Notice is served on the grounds of disrepair (A), non-payment of rent (B), or any other breach of lease covenant (C), statutory compensation is not payable. These are grounds often considered to be ‘fault’ of the tenant or lessee.
There are two grounds, considered ‘non fault’ and common to the Pubs trade, for claiming statutory compensation and these are:
- That the property is being redeveloped either whole or in part (F); or
- The most common, that the landlord requires the premises for his own occupation and use – (G).
Statutory compensation is then assessed on either one times rateable value for an occupation that exceeded 7 years but was less than 14 years, or two times rateable value if the occupation exceeded 14 years.
How are pub rents calculated?
The open market rental value should represent what would be paid by the ‘Reasonably Efficient Operator’ (REO) and based upon Fair Maintainable Trade (FMT).
What is 'MRO' (Market Rent Only)?
Upon tenant request, the granting of a free-of-tie rent and an ending of all product and service ties (with the exception of insurance) and Pub Co direct involvement in the trading operations of your property.
Should tenants' improvements be disregarded from the rent?
Speak With Us
We offer a no-obligation, free of charge strength of case review for all clients concerning rent review, lease renewal and pubs code. Get in touch today.
We regularly post pieces on topical, expert and technical areas to do with licensed and leisure property. Have a read of some of our blog posts below;
Click here to go to our Industry Insight page.
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