Onerous lease provisions

Some of the tenant’s covenants in a lease may impose restrictions on its occupation of the premises
which, when assessing the rental value of the property at rent review, warrrant an adjustment in the
rent. If the premises were offered in the open market on the same tenancy terms (and a discount
could be expected in any open market bids), to reflect the onerous lease provisions in comparison to
the ‘market norm’ for the class of property concerned, a simliar discount may be applied to the rent
review.