business premises. landlord / tenants
Discussion
Hi, Please does anyone know the following? I'm sorry if this has been posted before.
If a tenant is late in paying the quarterly rent, how long, weeks or months, before the landlord can just walk back in and take control of the business premises again, according to the law. With new landlord/tenants acts etc. Thank you.
If a tenant is late in paying the quarterly rent, how long, weeks or months, before the landlord can just walk back in and take control of the business premises again, according to the law. With new landlord/tenants acts etc. Thank you.
gibbos3 said:
Thanks for the replies. The landlord tenant act changed apparently in 1995. But as my lease was done before this I'm not sure where I stand anymore, if the lease is renewed soon.
Why do you say the law changed in 1995? Under what legislation?Are you still within the terms of the original lease? When was it granted and for how long?
The first thing you need to do is look at the terms of the tenancy agreement, and determine whether there is provision to take action where the rent is not paid as per the contract.
There may be a forfeiture clause which allows the lease to be terminated prior to the end of the agreed terms. Forfeiture is a method of determining a tenancy at common law (so without resorting to the use of the LTA 1954).
There needs to be either
a) a breach of covenent and a forfeiture clause in the tenancy OR
b) if there is no forfeitrure clause, the breach must be a breach of condition of the contract.
If the above is applicable, you must make a formal demand for the rent due (unless such requirement is excluded in the tenancy).
This then may give rise to two predominant remedies:
a) re-entry to the property by way of legal action OR
b) physical re-entry
The second opens up the possibility of an action for tresspass brought against you, so you need to make sure you have dotted the i's and crossed the t's in terms of procedure.
I'm not a LT lawyer, and this isnt legal advice, just a brief summary of what I consider the law to be. Taking such action can be a minefield so I suggest you seek advice from a reputable LT solicitor.
HTH
Edited by soprano on Friday 15th February 22:43
Chrisgr31 said:
Incidentially are you the tenant or landlord?
Yes I wondered that?Soprano's answer is good, practically what gets done depends on all sorts of things. I'd imagine landlords are reluctant to forfeit in this market, they'd rather keep the tenant on the hook - although that depends on the solvency of the tenant and the existence of any sureties.
To pick up someone elses point IMO there is MORE security under a business tenancy.
Piglet said:
Chrisgr31 said:
Incidentially are you the tenant or landlord?
Yes I wondered that?Soprano's answer is good, practically what gets done depends on all sorts of things. I'd imagine landlords are reluctant to forfeit in this market, they'd rather keep the tenant on the hook - although that depends on the solvency of the tenant and the existence of any sureties.
To pick up someone elses point IMO there is MORE security under a business tenancy.
Mind you as a tenants agent I do wish that more tenants were aware of what they are doing when they sign leases agree rent reviews etc!
Chrisgr31 said:
Piglet said:
Chrisgr31 said:
Incidentially are you the tenant or landlord?
Yes I wondered that?Soprano's answer is good, practically what gets done depends on all sorts of things. I'd imagine landlords are reluctant to forfeit in this market, they'd rather keep the tenant on the hook - although that depends on the solvency of the tenant and the existence of any sureties.
To pick up someone elses point IMO there is MORE security under a business tenancy.
Mind you as a tenants agent I do wish that more tenants were aware of what they are doing when they sign leases agree rent reviews etc!
Chris and Piglet are right, in that if the rent is paid, even after legal proceedings have been started, then that is the end of the matter. Proceedings effectively die there. If you are the landlord and you have received your rent, there is not alot you can do to remove the tenant.
The point I make regarding less/more security of tenure arises where rent is not paid - under statute residential tenants are afforded more protection for obvious reasons. The statutes are government policies to protect people from losing their home, there is less merit in protecting a business tenant.
This matters little here if you are the landlord. Like others have said, what you really what in this economic climate is certainty. If there is still some time to run on the tenancy and the tenant pays the rent (whether voluntarily/by demand/having started legal proceedings) that, as a landlord is all you really want.
I guess it depends on a couple of things.
1. As other have asked, are you the landlord or the tenant.
2. Is non payment of rent due to a lack of willingness to pay or a lack of ability to pay.
If the latter there is probably more merit in thinking about trying to remove the tenant as it may spell difficulties ahead. If the former, a demand may do the trick.
Edited by soprano on Saturday 16th February 12:56
Well if its lack of ability in the current market as Landlord, it might be better to offer to accept a lower amount. Some rent is better than none, especially with the full business rates being oayable on empty commercial premises.
However depends on location, nature of property etc though as to what the best advice is.
However depends on location, nature of property etc though as to what the best advice is.
gibbos3 said:
(I am the landlord.) I thank you all for the answers, I will re-read the lease befor renewal, I'm just sick of having to chase the rent every quarter. I salute your knowledge and thank you again.
From what you say it appears that the original term was fixed and you are reaching the end of that period?It my be easier, if you are wishing to remove the tenant to do so under the 1954 Landlord and Tenant Act. Part II deals with business tenancies.
You can attempt to end the tenancy by service of a s25 notice. There are stringent requirements as to what this notice must include, and when notice can be given.
The tenant can oppose the notice. The s25 notice however, must contain any opposition you (as the landlord) would have to the extension of the tenancy (if the tenant wishes to extend). The relevent considerations are contained under s30 of the 1954 Act.
s30(1)(b) specifically deals with situations in which the extension is resisted on the basis of continual late payment of rent and, depending on just how bad this tenant has been, should be given sufficient consideration.
HTH
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