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OUR REPUTATION, INDUSTRY EXPERTISE AND NATIONAL COVERAGE IS ONE OF THE BEST
IN THE TRADE   
 

Our Services

 

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:

 

  • Public Houses

  • Bars

  • Hotels

  • Restaurants

  • 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). Read our in depth articles to better understand the complexities of how pub rents are set. Rent Setting & Valuation For Pubs Fair Maintainable Trade (FMT) & Reasonably Efficient Operator (REO)




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. We have dedicated a full FAQ to answer all of the common questions surrounding MRO and the Pubs Code. MRO Frequent Asked Questions




Should tenants' improvements be disregarded from the rent?


Section 34 of the Landlord and Tenant Act 1954 sets out the disregards that play a significant part in the rental valuation of public houses. Items to be disregarded include: A. Tenant’s occupation; B. Goodwill; C. Improvements; and D. Licence Disregards A - C are standard in most leases with some slight change in their wording. A disregard of occupation prevents the tenant from having to pay more for their already established business than for an identical property close by. This then links to both the disregard of goodwill and any tenants' improvements. Disregarding the tenant’s goodwill does not prevent a profits test method of valuation being undertaken. It simply aims to ensure that the rent assessment is based on the fair maintainable trade of the 'reasonably efficient operator', and not the actual accounts, avoiding any over or under performance related to the current tenant. Read our article 'The Improvement Scam - Licence to Alter'





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.

 

Industry Insight

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.

 

We also send a regular newsletter to our subscribers containing all of the latest happenings, tips, case law and trade gossip. Newsletter Subscription - Click Here.

 

WHAT PEOPLE SAY

”Again we both thank you for your efforts, insight and expert opinion and wordsmith (your emails are a joy to read) in acting as our Agent in this MRO process”. 

—  Mr & Mrs F, Cumbria