The recently reported case of Idealview Limited v Bello serves as a warning to business tenants that rent review provisions in a lease can be triggered well after the contractual review date.

The lease in the above case began in 1969 and was for a term of 50 years at a yearly rent of £60.

In 2005, Mr Bello became the tenant, having acquired the remainder of the term at auction.

The lease provided for the rent to be reviewed after 25 years (in 1994), by reference to the open market value. However, no review had ever taken place.

In 2006, Idealview Limited bought the freehold reversion (becoming the landlord) and sought a rent review, increasing the rent from that point on to £1,700 per annum and backdating the increase to 1994, some 13 years ago.

This left the tenant, who had only just bought the lease, with a rent bill for over £22,000.

The tenant refused to pay and the landlord issued proceedings for the amount and to recover possession of the property. The Court recently upheld the landlord’s claim stating that, time not being of the essence, mere delay, even for 13 years, does not of itself prevent a landlord from exercising its contractual right to review the rent.

Although the tenant is seeking permission to appeal, this case is a warning to business tenants who acquire an existing lease. It is essential that enquiries are made to check whether the rent has been reviewed on the last review date, and if not, find out why and seek any necessary indemnities.