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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 am reposting this question because a U.S lawyer answered

Customer Question

I am reposting this question because a U.S lawyer answered my previous post based on U.S law instead of the laws that govern England and Wales .
I own a lease on a property which irun as a business park , I sub let the units on FRI leases mylease has 8 years to run and I would like to extend its term.
I suspect the freeholder would oppose this. I am told that the only way that I can argue for an extension is if i become an occupier.
An opportunity has come up for me to buy a controlling interest in one of the business's on site.
I can grant myself a lease and run the business or trade as a a ltd company with me as the sole shareholder ? Also if either of these are possible would it be sufficent to argue for a extension ?
The sub tenants are all on lease outside the 1954 act ,but my lease isn't.
Thanks
Submitted: 2 years ago.
Category: Law
Expert:  Joshua replied 2 years ago.
Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.

May I ask why you believe the freeholder may object to a renewal of the tenancy please? Is it because they prefer to avoid part II protected leases so would seek to regain possession in order to grant a contracted out lease or is it because you believe they have other plans such as redevelopment?
Customer: replied 2 years ago.
My leases to my sub tenants are outside the 1954act so if the freeholder choses to continue with the business and not extend my lease they would have a vscant site and able to offer what ever leases they wanted to.
So far as redeveloping is concerned I think the landlord wants to have many options open to them as possible.
Expert:  Joshua replied 2 years ago.
Thank you. You are essentially spot on with your understand of what is required. Specifically you have to satisfy the criteria set out in s23 LTA 1954 which are that there is a tenancy, that it relates to business, that the premises are occupied by the tenant seeking to renew for the purposes of business and that the tenant carries on the business concerned and finally that the tenancy does not fall into any of the exclusions (not relevant here - deals with agricultural, mining etc).Accordingly as you are not occupying the premises you have no right under part II to renew. However if you or your company occupy the premises for carrying on a business and your lease is not contracted out (which it is ot from what you say) then you would have a right to serve notice on the landlord to renew the tenancy by serving a s26 notice on the landlord. You could either grant yourself a new non contracted out lease of more than 6 months or if feasible surrender the existing tenancy and occupy under your present lease. Either option would give you a right to renew providing you otherwise qualify under the above criteria so it is whichever best fits the business model or causes the least administration.The only defences a landlord would have to the request for a renewal would be mainly if he plans to redevelop. It is not enough for him to just claim to have a general intention to redevelop. Caselaw has shown that he must be able to show plans that are well undeway, e.g. architects plans, planning applications and so on. He can also oppose on the basis that he intends to occupy personally or that you are in breach of covenant or the premises are in disrepair. All these things he must be able to prove. There are or one or two other bases which are rarely uI hope the above is of assistance? If you have no further questions for now I should be very grateful if you would kindly take a moment to click to rate my service to you today or just reply back to let me know if the above is helpful. Your feedback is important to me. If there is anything else I can help with please reply back to me I'd be very grateful
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Customer: replied 2 years ago.
Thank you most helpful.
Would it be sufficent to occupy only part ot the premises?
Expert:  Joshua replied 2 years ago.
I am glad the above was of assistance. Yes it would but then your renewal rights will only extend to the part you occupy so you would need to ensure you are occupying all parts you would wish to have a right of renewal over.