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Your pharmacy lease will most likely contain rent review provisions whereby, you (the landlord), will have the right to review the rent periodically throughout the duration of the lease. The frequency of these rent reviews is usually every 3 years, but they can be less or more frequent. Most pharmacy leases have rent review provisions which are on an “upwards only” basis which means there is no risk of your rent reducing if you instigate a rent review.
The two most common types of rent review in pharmacy leases are “market rent” based rent reviews and “index linked” rent reviews. The latter is usually linked to the Retail Prices Index (RPI) and the method of calculating the rent review is typically set out as a formula in the lease.
As well as the rent reviews within your lease, there is also the opportunity to review the rent at the end of the lease when it is time to agree a new lease with your pharmacy tenant. This is called a “lease renewal” and this process involves statutory procedures for which you should also seek professional advice from a solicitor as well as a surveyor.
Sue Pyatt, Practice Manager
Francis Mulhern, Bretton Medical Practice Peterborough
Dr Adnan Mohammad, GP Partner, Newsome Surgery, Yorkshire
Jill Foster, Practice Manager, Beacon Primary Care, Lancashire