business lease

[Syd knee]

At the end of a contracted out lease, if the landlord refuses to have any conversation with you and yet ignores the fact that you still occupy the premises, what are your/his rites as to rent?

[davidjpowell]

Take legal advice now. Urgently. From a proper solicitor. You run the risk of either being locked out, paying double rent or after a year ending up in a tenancy that can only once a year, with 6 months notice.

There is an arguement that you should only have to give 3 months notice. I'm having a similar argument at the moment.

[Chrisgr31]

As David says get proper professional advice from an expert in the field now!

Although I think that if you continue paying the rent, and the landlord accepts it, and there are no negotiations with the Landlord a periodic tenancy may be created and that would have the protection of the Landlord and Tenant Act 1954. However the sitution needs to continue for 2 years or so to get to that position!

This really serves as a reminder to business tenants NOT to agree to contract out of a the 1954 Act unless you know you will want to leave at the end of the term, or a SUBSTANTIAL reduction in rent is offered by the Landlord.

Contracting out leaves you in a very poor negotiating position at the end of a lease, and in the worst case having to pay to move. If you are contracted in, you may still have to pay to move, but at least you'll get an element of compensation from the Landlord if you are moving as they refuse to renew the lease.

The government have made contracting out easier, but I'd love to know why it is in the tenants interest to contract out!

[Syd knee]

Regretably the contracted out lease came with the purchase of a business. Rent cheques have been delivered to the landlords offices on time but not banked. The propperty will shortly become the subject of a CPO.

[singlecoil]

Chrisgr31 said:

The government have made contracting out easier, but I'd love to know why it is in the tenants interest to contract out!

Since it is (IME) the Landlord that insists on it, it most definitely isn't in the tenant's interest.

[davidjpowell]

My firm view is if a landlord insists, it's better to walk.

I hate agreeing to contracting out, as it guarantees hassle down the line.