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  • Commercial property – what are my rights as an tenant?
  • johndoh
    Free Member

    We are just over two years into a five year lease which (in the words of the lease agreement) ‘creates a new tenancy for the purposes of the Landlord and Tenant (Covenants) Act 1995’.

    However we have just discovered that our landlord has put in a planning application to turn the offices into residential which obviously effects our position. I haven’t spoken to them yet (and am a bit miffed he decided against speaking to us yet either really).

    I cannot find anything in the agreement that covers the eventuality of the landlord cancelling an agreement – the only clause I can find is a tenant’s ‘Break clause’ which only covers our rights to cancel midway through the agreement, not his.

    So – if he is to turf us out a good two years before our tenancy ends, what would our likely rights be?

    Cheers

    orange16
    Free Member

    if its a lease of commercial property the landlord will not be able to terminate the lease prior to the expiry date. If the lease is excluded from the ’54 Act – you will have had to swear a Stat Dec prior to completiong the lease which will be referred to in the lease you will havee no rights to renew at expiry. If however its within the Act you will have an automatic right to a new lease however the landlord can oppose, for example on grounds of redevelopment, but will have to pay compensation to you.

    In short dont panic, get a professional to check your lease, but you should be there until expiry – unless he offers to buy you out, in which cse you may also need professional advice

    hope this helps
    D

    sharkbait
    Free Member

    I think you’re jumping the gun a bit there. He’s only putting in for planning – even if he gets it (which will take a while to decide) he can then sit on it for another 2.5 years until your lease is up and then decide whether to sell or redevelop.

    From his perspective just because you’ve been there two years does not mean you’ll be there in another two (my FIL owns a small industrial estate, so I know what the turnover can be like).
    He’s hedging his bets – a good move that in no way means he’s going to try and chuck you out in 6 months.
    Maybe you should ask him what his longer term plans are?

    johndoh
    Free Member

    Thanks for the feedback so far. Not panicking yet, good to hear others opinions though.

    Cheers.

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