Commercial office rent - question
Commercial office rent - question
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W4NTED

Original Poster:

771 posts

245 months

Wednesday 13th January 2016
quotequote all
Not sure if this is the right place to post this. My brother has taken an office space on lease and signed the rental papers before Xmas. The landlord was not present as ''he lives abroad'' but he did have signed papers available on the day. His representative bought along the papers and these were signed by my brother in front of a witness (an electrician working on site). A deposit was paid in to the account of the name of the landlord.

My Brother now has possession and has moved in - no issues there. He has now received the first quarters rental invoice which has been made from a newly set up company (company incorporated 3 days before the lease was signed). He has searched the company and the directors name is different to the landlords name. The ''representative'' of the landlord said that the rent should be paid in to this account and that he is the sole contact person for this company.

Questions:
1) This new company is not mentioned anywhere in the paperwork
2) The director of the company is NOT the landlord
3) The representative of the company is not the director of the company

Should he be paying rent in to the bank account for this company or should he be paying the rent in to the same account as the deposit was paid - i.e the landlords bank account? Our concern is that the landlord could turn around after 12 months and say "where is my rent" as it has been paid somehwere else?

Should the rental papers clearly specify where the rent is to be paid?

Thanks guys


trickywoo

14,264 posts

261 months

Wednesday 13th January 2016
quotequote all
I think you are right to be suspicious.

I'd point out the differences in name between the invoice and the rental agreement and ask for an explanation.

Edited by trickywoo on Wednesday 13th January 10:26

jammy_basturd

29,778 posts

243 months

Wednesday 13th January 2016
quotequote all
I imagine that the landlord is possibly putting money through this company in someone else's name to either use their tax allowances or for other tax avoidance/evasion measure. Either way I'd want to contact the landlord directly to make sure everything is OK.

PurpleMoonlight

22,362 posts

188 months

Wednesday 13th January 2016
quotequote all
It could be that the owner has sold the property to the Ltd.

However, I would be reluctant to pay the rent to a third party without the express written instruction of the landlord on the lease.

I assume he didn't seek legal advice before effecting the lease. It might be a good idea to download a copy of Land Registry Title to check that the owner is the same as the landlord on the lease.

It could be a huge scam on an empty property!

Muncher

12,235 posts

280 months

Wednesday 13th January 2016
quotequote all
Do not pay the rent to anyone other than the Landlord as defined in the lease until such time as you receive a rent authority letter that you are happy has come from the Landlord.

W4NTED

Original Poster:

771 posts

245 months

Wednesday 13th January 2016
quotequote all
No he did not take legal advice - big mistake I think! He has downloaded a copy of the land registry records and the owner is someone else - not the Landlord mentioned in the contracts - yikes - what next!?

Muncher

12,235 posts

280 months

Wednesday 13th January 2016
quotequote all
W4NTED said:
No he did not take legal advice - big mistake I think! He has downloaded a copy of the land registry records and the owner is someone else - not the Landlord mentioned in the contracts - yikes - what next!?
Do what he should have done at the start, speak to a solicitor. byebye

How much is the rent? What's the term and how much has been paid so far?

Edited by Muncher on Wednesday 13th January 16:09

PurpleMoonlight

22,362 posts

188 months

Wednesday 13th January 2016
quotequote all
Muncher said:
W4NTED said:
No he did not take legal advice - big mistake I think! He has downloaded a copy of the land registry records and the owner is someone else - not the Landlord mentioned in the contracts - yikes - what next!?
Do what he should have done at the start, speak to a solicitor. byebye
This, asap.

W4NTED

Original Poster:

771 posts

245 months

Wednesday 13th January 2016
quotequote all
Muncher said:
W4NTED said:
No he did not take legal advice - big mistake I think! He has downloaded a copy of the land registry records and the owner is someone else - not the Landlord mentioned in the contracts - yikes - what next!?
Do what he should have done at the start, speak to a solicitor. byebye

How much is the rent? What's the term and how much has been paid so far?

Edited by Muncher on Wednesday 13th January 16:09
£20k per annum, only the deposit has been paid so far £5k. The lease is for 24 months with a 12 month break clause.

Chrisgr31

14,292 posts

286 months

Wednesday 13th January 2016
quotequote all
We act for a number of landlords collecting rents and we will not accept payments that appear to be made by the person who is not the tenant. So if the tenant was ABC Shoes we would not accept payment from CBA Shoes.

In the event the landlord changes we formally notify the Landlord and you should have been formally notified of any change. It might be that the payment os going to the landlords agents but you should be notified of this.

W4NTED

Original Poster:

771 posts

245 months

Wednesday 13th January 2016
quotequote all
Panic over - the building is leasehold and the deeds were freehold with the leasehold given to a LtD company associated with the landlord.