Landlord sells my leased property to his daughter
Discussion
I run a 1 man joinery business from a leased property under the Landlord and Tenants Act 1954, the landlord sold or gave the property to his daughter who has since continuously bullied and harassed me in an effort to change to a new lease. Her actions have been extremely disruptive to my business and distressing to myself. Examples of her spiteful actions :- Stating she would not allow vehicular access (although specified on the lease) insist I remove a gas bottle (heating) adjacent to my outside wall as I don't rent or own where it stands (it's been there 6 years with the previous landlords permission provided I paid the additional insurance premium), increase my rent to double the market rent etc.
Any advice, suggestions would be greatly appreciated.
Any advice, suggestions would be greatly appreciated.
A landlord cannot just seek to put the rent up, it has to be done either in line with the wording of the rent review clause in the lease or the lease has to be brought formally to an end and a new lease negotiated and terms agreed. In both cases, the rent will be at the market rent, however you and her may have differing opinions on what that may be.
You will have a clause in the lease for what is referred to as 'quiet enjoyment', i.e. the landlord cannot just come round having a go at you about things.
You will have a clause in the lease for what is referred to as 'quiet enjoyment', i.e. the landlord cannot just come round having a go at you about things.
drmike37 said:
Just stop paying the rent. Take your time finding somewhere new. Don’t know about business let’s, but in residential it’s almost impossible to get unpaid rent of someone.
DO NOT DO THIS! A business rent is nothing like a residential rent - if you don't pay your rent the landlord can change the locks straight away, no matter how much of a t
t you think they have been.Take the gas bottle and put it somewhere that is part of your demised premises. The rent review clause, as mentioned above is the only term of reference to when the rent can be increased and thereafter, if the landlord decides to invoke the rent review clause you will need a local chartered surveyor, who has an expertise in rental levels in the area, to argue the case for you (rental levels almost everywhere are pretty static atm). It is a rent 'review' clause, not necessarily a rent 'increase' clause. It should also be noted that if the terms of your lease are agreed to be 'inside the 1954 L&T Act' then you have a right to a new lease term except if the landlord wants the property back for his own occupation or he wants to substantially redevelop the property. These are the only two reasons why he can not allow a new lease at the end of your current lease.
Good luck!
Good luck!
Johnniem said:
Take the gas bottle and put it somewhere that is part of your demised premises. The rent review clause, as mentioned above is the only term of reference to when the rent can be increased and thereafter, if the landlord decides to invoke the rent review clause you will need a local chartered surveyor, who has an expertise in rental levels in the area, to argue the case for you (rental levels almost everywhere are pretty static atm). It is a rent 'review' clause, not necessarily a rent 'increase' clause. It should also be noted that if the terms of your lease are agreed to be 'inside the 1954 L&T Act' then you have a right to a new lease term except if the landlord wants the property back for his own occupation or he wants to substantially redevelop the property. These are the only two reasons why he can not allow a new lease at the end of your current lease.
Good luck!
I came back to this to post the same, you've saved me a job.Good luck!
The only comment I would make is that in my experience the main sector where there have been rental increases over the last 3-4 years have been for the smaller light industrial units. Increased demand and lack of new developments, coupled with conversion of older units to alternate uses, has seen rents increase the most on these where I am (North/ West Yorkshire border).
soxboy said:
I came back to this to post the same, you've saved me a job.
The only comment I would make is that in my experience the main sector where there have been rental increases over the last 3-4 years have been for the smaller light industrial units. Increased demand and lack of new developments, coupled with conversion of older units to alternate uses, has seen rents increase the most on these where I am (North/ West Yorkshire border).
Fair comment Soxboy. As a building surveyor in central London I wouldn't have known that about small industrial units. I do now and it has enhanced my knowledge base! Can I put reading PH down as CPD (LLL if you are under 30!!). Informal category of course.The only comment I would make is that in my experience the main sector where there have been rental increases over the last 3-4 years have been for the smaller light industrial units. Increased demand and lack of new developments, coupled with conversion of older units to alternate uses, has seen rents increase the most on these where I am (North/ West Yorkshire border).
Johnniem said:
Fair comment Soxboy. As a building surveyor in central London I wouldn't have known that about small industrial units. I do now and it has enhanced my knowledge base! Can I put reading PH down as CPD (LLL if you are under 30!!). Informal category of course.
By all means, got to get the hours in before the year end! soxboy said:
A landlord cannot just seek to put the rent up, it has to be done either in line with the wording of the rent review clause in the lease or the lease has to be brought formally to an end and a new lease negotiated and terms agreed. In both cases, the rent will be at the market rent, however you and her may have differing opinions on what that may be.
You will have a clause in the lease for what is referred to as 'quiet enjoyment', i.e. the landlord cannot just come round having a go at you about things.
You will have a clause in the lease for what is referred to as 'quiet enjoyment', i.e. the landlord cannot just come round having a go at you about things.
I understand the 'Market Rent' is the same as the 'Rateable Value' which was and still is 50% of her proposal. A good reference 'quiet enjoyment' I shall make her aware of that. Thanks for responding.
ata loss said:
I understand the 'Market Rent' is the same as the 'Rateable Value' which was and still is 50% of her proposal. A good reference 'quiet enjoyment' I shall make her aware of that. Thanks for responding.
If you have a landlord wanting to increase rent, the key is to respond very politely and say that you don't consider that there is scope for an uplift, however if they (as landlord) believe there is then can they please justify it with any evidence they may have which they genuinely consider supports an uplift - ask them to put it in writing as you are very busy and will get to look at it when you get chance. Only once you have this from them would I entertain any meaningful discussions with them.
OP - assuming you're paying the market rent why not move somewhere else?
As a joinery business I assume you travel to your clients rather than the other way around and, if you've a light industrial unit I assume you're not positioned in order to attract passing trade.
What's the big benefit to you of staying where you are?
As a joinery business I assume you travel to your clients rather than the other way around and, if you've a light industrial unit I assume you're not positioned in order to attract passing trade.
What's the big benefit to you of staying where you are?
OP careful who you listen to on this thread. Some surveyors have given you good advice. Some idiots who should keep their mouths shut could cost you a great deal of money.
In the commercial world the tenant has much less protection than in residential terms. You know about the '54 act, so are hopefully aware of what that actually means.
The terms of the lease are key - and it's very hard to give specific meaningful advice without seeing the lease.
Some general advice based on specifics.
Vehicle access - depends on the exact terms of your lease. Would be very unusual for a LL to have any legs to stand on though.
Gas Cylinder. Normally if it's outside your demise then you are stuffed. However if the previous landlord accepted it, and took payment for it, then it could be argued that under the principle of estoppel it is now part of the agreement.
Rent increase - it's not clear how this has been increased. If it's by rent review then their should be a rent review clause - if there is not then no increase during the term. If there is it will contain some specific clauses, which should include the ability to refer to an independent expert or arbitrator. You do need your own surveyor in my opinion.
If it is at expiry then again there is a procedure to follow and you can apply to the county court if necessary who will set a market rent.
Referring a rent review or pursuing a Lease Renewal via the court process is unfortunately not cheap, and there can be a risk of ending up with costs against you if the LL wins, under some circumstances. Back to take your own expert advice.
As said above RV should be market rent as at 1st April 2015. The VOA are sometimes right and sometimes wrong, so be a little cautious of taking it as market value - and it is historic.
Hope that helps.
In the commercial world the tenant has much less protection than in residential terms. You know about the '54 act, so are hopefully aware of what that actually means.
The terms of the lease are key - and it's very hard to give specific meaningful advice without seeing the lease.
Some general advice based on specifics.
Vehicle access - depends on the exact terms of your lease. Would be very unusual for a LL to have any legs to stand on though.
Gas Cylinder. Normally if it's outside your demise then you are stuffed. However if the previous landlord accepted it, and took payment for it, then it could be argued that under the principle of estoppel it is now part of the agreement.
Rent increase - it's not clear how this has been increased. If it's by rent review then their should be a rent review clause - if there is not then no increase during the term. If there is it will contain some specific clauses, which should include the ability to refer to an independent expert or arbitrator. You do need your own surveyor in my opinion.
If it is at expiry then again there is a procedure to follow and you can apply to the county court if necessary who will set a market rent.
Referring a rent review or pursuing a Lease Renewal via the court process is unfortunately not cheap, and there can be a risk of ending up with costs against you if the LL wins, under some circumstances. Back to take your own expert advice.
As said above RV should be market rent as at 1st April 2015. The VOA are sometimes right and sometimes wrong, so be a little cautious of taking it as market value - and it is historic.
Hope that helps.
OP, please also be aware that contained within your lease there will be clauses relating to your liabilities/responsibilities in respect of repair, maintenance and redecoration. This is not (usually) a major issue whilst you are in occupation as the landlord just needs his rent paid but there will be consequences in this regard when you leave the premises (at end of lease, or sooner). Please avail yourself of a copy of the lease that you signed and check out the 'redecoration' and 'repair' clauses. Also have a look at the 'yield up' clauses which will detail exactly what the landlord is expecting to get back at the end of the lease. You may be surprised to find that you will have to redecorate (maybe internally and externally), repair all damage, remove all the alterations you may have made during your occupation, replace landlord's fixtures and fittings that have become redundant or are broken and clear and clean out all of your stuff. The only way to have mitigated this liability is for there to be a schedule of condition agreed at commencement of the term. This is not something the landlord would offer but that is not to say that you do not have one. It all depends on the contents of the lease that you signed and the professional advice that you received when you took the lease. Leaving the premises because of a minor rent increase may cost you far more than you expect.
By way of some mitigation, if the landlord wants to demolish or substantially refurbish, once you have left the premises, the dilapidations liability could be minimised or negated altogether. There are other legal arguments to reduce the liability but these are not for now as they are complicated.
Good luck and stick with it.
JM
By way of some mitigation, if the landlord wants to demolish or substantially refurbish, once you have left the premises, the dilapidations liability could be minimised or negated altogether. There are other legal arguments to reduce the liability but these are not for now as they are complicated.
Good luck and stick with it.
JM
soxboy said:
The Rateable Value is supposed to reflect the Market Rent of the property as at 1st April 2015, so is now a bit historic.
If you have a landlord wanting to increase rent, the key is to respond very politely and say that you don't consider that there is scope for an uplift, however if they (as landlord) believe there is then can they please justify it with any evidence they may have which they genuinely consider supports an uplift - ask them to put it in writing as you are very busy and will get to look at it when you get chance. Only once you have this from them would I entertain any meaningful discussions with them.
Good point I will try that, thankyouIf you have a landlord wanting to increase rent, the key is to respond very politely and say that you don't consider that there is scope for an uplift, however if they (as landlord) believe there is then can they please justify it with any evidence they may have which they genuinely consider supports an uplift - ask them to put it in writing as you are very busy and will get to look at it when you get chance. Only once you have this from them would I entertain any meaningful discussions with them.
Countdown said:
OP - assuming you're paying the market rent why not move somewhere else?
As a joinery business I assume you travel to your clients rather than the other way around and, if you've a light industrial unit I assume you're not positioned in order to attract passing trade.
What's the big benefit to you of staying where you are?
As a joiner I work at my workshop and make things with comparatively large machines, carpenters go to sites (peoples homes and fit the product) unfortunately there are no other units within 10 miles or so, hence my concerns.As a joinery business I assume you travel to your clients rather than the other way around and, if you've a light industrial unit I assume you're not positioned in order to attract passing trade.
What's the big benefit to you of staying where you are?
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