(a) Explain the practice of lease restructuring and why there might be differences in opinion between the landlord and tenant as to the value of different lease arrangement?

(b) A tenant of a shop wants to extend the current lease to 15 years with five-year upward-only rent reviews. The current lease has two years unexpired at a rent of 40,000 per annum. The market rent is 45,000 per annum. Assuming comparable freehold yields of 7%, what rent should the landlord accept and the tenant offer for the first five years of a new lease? When reporting the rent, comment on anything else that should be considered.