How Early Negotiation Turned an Epsom Lease Renewal into a Win-Win Deal
In commercial property, successful negotiations often come down to being realistic about your position. When landlords and tenants approach discussions with a clear sense of their priorities, they can reach an outcome that benefits both sides.
That was the case in a recent 16,000 sq ft lease renewal in Epsom, where Simon Harper represented the landlord. The result was a reversionary lease agreed at £240,000 per annum, securing income for the landlord and giving the tenant the flexibility they needed for the next stage of their plans.
What Is a Reversionary Lease?
A reversionary lease is a lease that starts at a future date, often when the existing lease still has time left to run. It allows both the landlord and tenant to agree terms now that will take effect later, removing uncertainty for both sides.
For landlords, it secures future income and protects against void periods. For tenants, it provides continuity of occupation without the pressure of immediate relocation.
In this case, the building is nearing the end of its useful life. The landlord knew redevelopment would eventually be necessary, but not just yet. The tenant, meanwhile, wasn’t ready to move but recognised that their time in the building was limited.
By agreeing a reversionary lease, both sides gained exactly what they needed. The landlord got a strong rent and stability, while the tenant secured short-term flexibility to remain in occupation.
Why Realistic Negotiation Matters
Too often, lease renewals become a battle of wills. But when both sides start talking early and are honest about what they want to achieve, the process becomes far smoother.
Here, the conversation started early and involved our expert Chartered Surveyor, Simon, from the start. Each party recognised the other’s position and with Simon’s extensive experience working for occupiers he was able to bring a valuable perspective:
- The landlord wanted certainty of income before redevelopment.
- The tenant wanted flexibility and time to plan a move.
This mutual understanding created space for a balanced deal that reflected both the physical value of the property as well as the practical value of the lease terms.
As Simon explains: “Rent isn’t just about what a building is worth today - it’s about the value of the lease terms you agree. A lease with flexibility has a cost to the tenant, and a lease with long-term certainty has value for the landlord. When both parties understand that, you can achieve a result that works for everyone.”
The Value of Flexibility and Certainty in Lease Negotiations
In commercial property, rent is influenced not only by location, size, and condition but also by the terms of the lease agreement.
- A tenant pays more for flexibility, such as break clauses or short commitments.
- A landlord values security of income, which allows them to plan and invest with confidence.
This deal was a perfect illustration of that principle. The tenant was happy to pay a premium for the flexibility they needed, and the landlord was pleased to secure income on a building approaching redevelopment.
Everyone walked away satisfied and that’s the hallmark of a deal done well.
Why Using a Chartered Surveyor Makes the Difference
Negotiations like this are about far more than just about numbers. They’re about judgement, experience and timing. A Chartered Surveyor brings the market knowledge to benchmark rents accurately, the technical insight to understand a building’s life cycle, and the negotiation skills to balance competing priorities.
In this case, Simon’s expertise ensured the landlord achieved a strong rent while maintaining an open, constructive relationship with the tenant, always important for any ongoing occupation.
How Expertise Creates Win-Win Outcomes
Early engagement, realistic expectations, and professional advice are what make win-win deals possible. A reversionary lease won’t suit every situation, but where both sides value certainty and flexibility in equal measure, it can be a powerful solution.
At Jaggard Macland, we help clients make informed property decisions for the long term.
If you’re approaching a lease renewal or considering reversionary terms, our team can guide you through the options and ensure you achieve the best possible outcome.