DEED OF LEASE (RENEWAL FOR FURTHER TERM, RENT TO BE FIXED ON MARKET VALUE)

If the tenant shall be desirous of taking a lease of the demised premises for a further term of [………] years from the expiration of the term hereby granted at the rent and on the terms and conditions hereinafter mentioned and shall not more than twelve nor less than six months before the expiration of the term hereby granted give to the landlord notice in writing of such his desire and if he shall have paid the rent hereby reserved (hereinafter called the current rent) and shall have [reasonably] performed and observed the several stipulations herein contained and on his part to be performed and observed up to the termination of the tenancy hereby created then the landlord will let the demised premises to the tenant for the further term of [……….] years from……….at a rent to be determined in the manner provided by the schedule hereto and payable as therein provided and subject in all other respects to the same stipulations as are herein contained except this clause for renewal.
SCHEDULE
The rent for the said further term (hereinafter called the new rent) shall be such annual sum as shall be agreed between the landlord and the tenant or determined as hereinafter provided to be the current market rental value of the demised premises at the time of such agreement or determination and shall be paid without any deduction within 5th day of every current month in advance.

Any agreement between the landlord and the tenant as to the new rent shall be in writing signed by the parties.

If such agreement has not been made six months before the date on which the said further term is due to commence either party hereto may require an independent surveyor (hereinafter called the surveyor) to determine the new rent.

The surveyor may be nominated by agreement between the landlord and the tenant.

Notice in writing of his appointment shall be given by the surveyor to the landlord and the tenant inviting each to submit within a specified period (which shall not exceed four weeks) a valuation accompanied if desired by a statement of reasons.

The surveyor shall act as an expert and not as an arbitrator. He shall consider any valuation and reasons submitted to him within the said period but shall not be in any way limited or fettered thereby and shall determine the new rent in accordance with his own judgment and option as to the true current market rental value of the demised premises.

The surveyor shall give notice in writing of his decision to the lessor and the lessee within [two] months of the appointment or within such extended period as the landlord may agree.

If the surveyor comes to the conclusion that the current market rental value of the demised premises is less than the current rent and the new rent shall nevertheless be the same as the current rent and the decision of the surveyor shall so state.

If the surveyor shall fail to determine the new rent and give notice thereof within the time and in the manner hereinbefore provided or if he shall relinquish his appointment or die or if it shall become apparent that for any reason he will be unable to complete his duties hereunder the landlord and the tenant may appoint a new surveyor upon mutual consent to decide upon the matter within an extended period in the like manner.

The decision of the surveyor shall be final on all matters hereby referred
to him.

Rent shall not be due at the rate of new rent notwithstanding that the said further term may already have commenced until after the tenant has been given such notice thereof as is hereby provided and if the said further term shall have commenced before the tenant has been given such notice the rent shall for the time being and until such notice is given be at the rate of the current rent but on the first rent day after the giving of such notice to the tenant there shall fall due in addition to the appropriate instalment of the new rent a sum by way of additional rent equal to the difference between the new rent and the current rent for the period since the commencement of the said further term.

The fees of the surveyor shall be shared equally between the landlord and the tenant.

As respects all periods of time referred to in this schedule time shall be deemed to be of the essence of the contract.

SIGNATURES