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  • Commercial lease expired – Scotland
  • bencooper
    Free Member

    Another one I could do with some advise on – this current shop’s lease expires in April I believe (it’s been extended a couple of times, can’t find the latest extension, but believe it was for 6 years from 2008).

    Called letting agents, they said they couldn’t tell me when the lease expired as they don’t act for me.

    However they also sent another rent invoice, which says “The above sums are demanded without prejudice – lease expired” on it.

    Presumably if the lease has expired then I’m under no obligation to keep paying rent as long as I move out by that date?

    They’re so unhelpful it’s ridiculous.

    whatnobeer
    Free Member

    Called letting agents, they said they couldn’t tell me when the lease expired as they don’t act for me.

    Meaning they act for the landlord? Seems a bit odd, surely they act for both of you.

    I would of thought that it would default to a rolling 1 month contract or something similar where you can terminate at any point 1 month in advance? But IANAL or an expert in commercial property lets…

    peterfile
    Free Member

    Acting in the capacity as agent basically means they are conducting the landlord’s business on his behalf. If the lease has in fact expired, their ability to do so might have expired with it (although that will depend on what the terms of their agency is with the landlord).

    In fact, many letting/estate agents aren’t true agents at all. They simply act as introducers and have no ability/authorisation to act in the capacity of agent of the landlord.

    You will be liable for any sums which arise under the lease until it expires. However, there will probably be a survivorship provision which will set out that the payment provisions will survive after termination/expiry, which means you’ll still be on the hook for any sums which arose prior to expiry until you settle up in full. In short, you can’t avoid your contractual obligation to pay something simply by the expiry of the contract. (I’ve never drafted a lease, so there may be some property law quirks, but survivorship provisions are usual in most contracts. In any event, if you owe the landlord money, he could recover it as a debt)

    I’m more concerned by the fact that the lease has already expired (according to them) but you’re still occupying the premises? Can you contact the landlord directly?

    andyl
    Free Member

    I’d be checking that once the lease has expired you have not lost any automatic right to renew.

    Better get looking for somewhere new in the mean time and enjoy some free rent until they catch up with you.

    bencooper
    Free Member

    Sorry, should have been clearer – the invoice they sent is for 28/02/2014 to 27/05/2014 – so I don’t think the lease has expired yet.

    Though for some reason I thought it was 4th April the lease started.

    In 12 years I’ve never had any direct dealings with the landlord.

    So next stage is a letter to the agents and to the landlords direct, saying that I will be moving out at the end of the lease period?

    peterfile
    Free Member

    Check your lease for provisions relating to expiry/termination.

    You’ll need to follow whatever is in there if you want to bring the lease to an end. It might be that it comes to an end naturally on the date of expiry, however double check in case there’s something you are required to do in order to avoid any automatic renewal etc (e.g. serving a form of notice).

    From memory (and it’s a bit hazy), a fixed term non residential lease simply ends on the expiry date (e.g. at the end of the lease term, taking into account any extensions). But, if you continue to occupy the property after that date then you’ll be liable for ongoing rent. i suspect there will be some form of notice period attached if this happens, but no idea what this would be.

    bencooper
    Free Member

    On the original lease, as far as I can see I’m only responsible for returning it to the same condition as when I moved in – which won’t be hard.

    peterfile
    Free Member

    Seems straightforward enough. I’m not a property lawyer ben, but happy to have a look over the lease to see if anything unusual is in there. Send it over if you want.

    cvilla
    Full Member

    Don’t know about Scotland, but CHECK your lease agreement and possibly get local legal/surveyors advice. There are often clauses about leaving the premises in a certain condition, redecorating, removing and making good any fittings, and so on, with legal fees and charges against you possibly dilapidations and once you leave you don’t have access to put anything right, so they charge you £££
    It sounds like you are set on moving just be careful of the lease exit strategy, i.e. check it out. Some leases ask for notice by a certain time or you are still liable…your lease is the first starting point, good luck.

    bencooper
    Free Member

    Nothing about notice period is the lease, though there is the usual stuff about returning the premises to the same condition that they were when we moved in – not going to be a problem.

    Very impressed with the efficiency of the Registers of Scotland – emailed them some details yesterday afternoon asking if they could find the lease extension, copy arrived in the post first thing this morning.

    Next job – working out how to move several tons of workshop equipment 😉

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