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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 26069
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I rent out a shop to my tenant on a commercial licence. He

Resolved Question:

I rent out a shop to my tenant on a commercial licence.
He has now fallen behind with his rent by 3 months,I had set up a plan for him to pay £150pcm in order to catch up (eventually ).he has now stopped paying the monthly agreed amont and is stating that he now has no intention of paying.
The original deposit was £1200 and monthly rent @£450pcm,as can be seen -he has eaten away at his deposit.
I have issued him with notice to pay the past due,this he has ignored.
What would be the next step for me to take?
Thank You

Jim
Submitted: 3 years ago.
Category: Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I ask if the tenant has exclusive occupation of the premises please?

Joshua :

How long has he occupied the premiese roughly?

Customer:

Hello,
he only has occupation of the lock up shop unit and has been occupying for some 2 years.

Joshua :

Thanks. Based upon what you say this cannot be a licence because he has sole occupation of the premises. A licence is only a licence if the tenant shares occupation and the fact it is called a licence does not make it so. Based on what you say he will have a lease of the premises on the basis of the decision is Street v Mountfort.

Joshua :

However the provisions from the licence are still pertinent. Is there a provision in the licence that provides that you may determine the licence and take back possession of the same if rent is unpaid for more than a certain number of days - e.g. 28 days?

Customer:

yes there is a provision
'14) Rental or arrears of any kind unpaid for seven days shall attract an interest charge at a rate of 15% per annum added monthly on the first day of each month'

Customer:

4. At the discretion of the Licensor if the fee or any part of it shall be in arrears for seven days or more after the due date the licence will, by notice in writing sent by post to the Licensor’s home or registered office address or left at the property used as described in this agreement, end at the end of the calendar month for which it is due. The Licensor may then seek a replacement user for the property and if successful the fee as in the ceased licence will end from the date of the commencement of the new user otherwise at the expiry of the six months notice plus the odd days to the end of the month in which the notice was issued

Joshua :

Thanks. On this basis you will need to consider serving a s146 notice to forfeit the lease if you wish to recover possession. You can also at the same time consider serving a statutory demand on the tenant personally which is the first step towards bankruptcy.

Joshua :

A statutory demand can be sufficient to encourage a tenant to pay in its own right.

Joshua :

https://www.gov.uk/government/publications/statutory-demand-debt-for-liquidated-sum-payable-immediately-form-61

Customer:

statutory demand

Joshua :

It costs nothing to serve and there is no obligation to take the next step on your part and apply to make him bankrupt.

Customer:

thank you for your assisitance,well appreciated

Joshua :

A pleasure. If I can assist any further as the situation develops please do no hesitate to let me know.

Customer:

thank you

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