Tenant has sub let and made alterations - can i remove ?

Tenant has sub let and made alterations - can i remove ?

Author
Discussion

ZeusF

Original Poster:

377 posts

122 months

Saturday 31st May 2014
quotequote all
I have a tenant in my commercial unit and the relationship is very bad, to cut a long story short, we were partners until I returned from a trip and found the company no longer belonged to me and I wasn't allowed to enter my own building.
I have since moved on and the tenant remains within my building, they pay rent on time every month.

The problem now is that they have sublet the building to another company they part own and have made significant alterations to the building, including fitting vehicle ramps and have changed the usage of the building from a technical side to a mechanical side.
The building was always perfect when I owned and worked there and now it is becoming like any garage type business.

My lease confirms that they can NOT make changes without my permission and they can NOT sublet.

My question is, can I simply give them notice to vacate ?
I really just want them out now as each month something new seems to be an issue but the whole thing is driving both me and my wife crazy, we just want shut of these issues.

Muffsy

141 posts

119 months

Saturday 31st May 2014
quotequote all
I don't know the ins and outs but if the Lease clearly states that the Tenant cannot alternate or Sub-Let then the Terms f the Contract are indeed being broken.
Also the nature of the Business has changed and that also violates the Industry side f things as Units are Sold simply on what Trade it's being used for ie Storage, Industrial, Mechanical so the relevant Council could be involved and close down the Unit but not sure if that's down to the Owner or simply the Tenants.

mondeoman

11,430 posts

265 months

Saturday 31st May 2014
quotequote all
RTC


(Read the contract - any breach on their part should allow you to terminate, maybe.)
(Or do a rent review and put it up by a silly amount wink )

Chrisgr31

13,440 posts

254 months

Saturday 31st May 2014
quotequote all
Quite often leases allow tenants to share occupation with other companies in the same group even if subletting usually barred.

However other posters here are more experienced in this subject than me,

The Moose

22,821 posts

208 months

Saturday 31st May 2014
quotequote all
It's a rather bizarre situation all round by the sounds of things.

You went away on holiday as part-owner of the business. When you came back, you were no longer owner of any of the business.

You also then don't seem to give much of a damn about that and just let it go?

I'm not sure we have the full story and I'm sure that'll affect the answer. I'd suggest asking someone who's a specialist in this field.

ZeusF

Original Poster:

377 posts

122 months

Saturday 31st May 2014
quotequote all
The workshop does have the ability to be used as full motor trade but the reality is that I just want them out. There are far more issues than I've posted here and has gone personal but I let it be until they blatantly violated the contract which is how they have operated for several years now.

It isn't really in our interest to remove them as we initially bought the unit as a pension fund but the stress of still being in contact with these people makes us physically sick. My wife just said sell the place and get them out of our life but if we can remove them legally and then rent it would be a better option.
We don't need the money, it's not about that and we rent the unit out at around a quarter of the current market value.

Basically I was in business with the guy. We separated and I allowed them to continue there. The relationship has turned sour and I want rid and I just wanted to know if these breaches of he contract were enough to legally remove them and move on with my life.

Maz_uk

590 posts

197 months

Sunday 1st June 2014
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Petrol..... Matches.....

I'm joking, sounds like you need to go and see a good solicitor and get these people out.

Let it out at 4x current value and live happily ever after.

Beyond Rational

3,524 posts

214 months

Sunday 1st June 2014
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Is there a potential breach of planning use classes due to the alterations/nature of work?

Ken Sington

3,958 posts

237 months

Sunday 1st June 2014
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Depending on how the lease is drafted, and it contains rent review provisions, you may find that you can charge more rent for alterations if they have been carried out at the expense of the tenants but without your consent.

Keep it stiff

1,762 posts

172 months

Sunday 1st June 2014
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Talk to your solicitor not this PH forum!

StuntmanMike

11,671 posts

150 months

Sunday 1st June 2014
quotequote all
Listen to your wife, evicting them will be time and money, will it rent out again, there's a lot of empty units around.

Chrisgr31

13,440 posts

254 months

Sunday 1st June 2014
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When is/was the rent review? Can you activate the rent review clause and increase the rent to market value? Might be back-dateable!

surveyor

17,768 posts

183 months

Sunday 1st June 2014
quotequote all
Keep it stiff said:
Talk to your solicitor not this PH forum!
If you really want them out, then this. But make it a property litigation lawyer, not a high street one.

A tenant can ask a court for relief from for forfeiture in various circumstances. You can have been assumed to have accepted the alterations if you have accepted or demanded rent since they have been carried out. Same goes for sub-letting.

Alterations aren't really a biggy, and most judges would I suspect grant relief based on that they can be reinstated at the end of the lease.

In all honesty, I'd contemplate talking to a firm with a good commercial property management, and L&T specialist. Get it all sorted on the legal front and either just collect the rent or then sell it.

Don't let it get personal - it's going to end up costing you money.

Chrisgr31

13,440 posts

254 months

Monday 2nd June 2014
quotequote all
surveyor said:
If you really want them out, then this. But make it a property litigation lawyer, not a high street one.

A tenant can ask a court for relief from for forfeiture in various circumstances. You can have been assumed to have accepted the alterations if you have accepted or demanded rent since they have been carried out. Same goes for sub-letting.

Alterations aren't really a biggy, and most judges would I suspect grant relief based on that they can be reinstated at the end of the lease.

In all honesty, I'd contemplate talking to a firm with a good commercial property management, and L&T specialist. Get it all sorted on the legal front and either just collect the rent or then sell it.

Don't let it get personal - it's going to end up costing you money.
Good advice from TheSurveyor who is more experienced than me in this. I would merely reiterate my earlier comment about checking the lease and rent reiew clause as you may be able to increase the rent on a back dated review.

So I would add the option of speaking to your local commercial property surveyor. Its a lot better to have an occupied unit than a vacant one and you might be able to resolve all issues if youcan "stitch up" the existing tenant with an increased rent, get the unit externally managed, and benefit from an increased rental stream!

astroarcadia

1,710 posts

199 months

Monday 2nd June 2014
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Take all your emotion out of the situation or it will cost you more than its needs to.

Take professional advice.

theguvernor

629 posts

130 months

Tuesday 3rd June 2014
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Does your contract have a rent review?
(I've no idea how the above work), but couldn't you just put the rent up & if they don't like it they can Foxtrot Oscar or is it not as simple as that?

Johnniem

2,660 posts

222 months

Tuesday 3rd June 2014
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All of the above makes perfect advice. The repairing covenants (ie dilapidations) at the end of the lease will dictate whether you can get the alterations reinstated and since they are unlicenced (the lease will tell you if they need a licence!) then it is incumbent upon you to ensure that your chartered building surveyor (!!!) dealing with the dilaps on your behalf, knows that there are alterations. He should realise this anyway when he inspects.

My company have all the skills to deal with this matter for you. We are based in London (City) and have an office in the west end too if that is any help. I can deal with the dilaps too!