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Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10623
Experience:  Barrister 17 years experience
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A commercial property lease completed 11/11/14. Date on lease

Customer Question

A commercial property lease completed 11/11/14. Date on lease is 21/9/14. Tenant had no right of entry or use of property until completion on 11/11/14. Should solicitor acting for tenant have ensured lease date was same as completion date, and should tenant be liable for rent, service charge and rates in period to 11/11/14 ?
Submitted: 1 year ago.
Category: Law
Expert:  Buachaill replied 1 year ago.
1. Here if the tenant occupied the commercial property premises between 21/9/2014 and 11/11/2014, without an agreement in relation to it, the original lease will, in law, be taken to have continued in existence in the form of a periodic tenancy until completion took place on 11/11. However, where the tenant does not havea right of entry or use of the property, then the tenancy is deemed to have ended on 21/9/2014. During this period the tenant would not be liable in law for rental payments, service charges and rates for this period. Secondly, there is no obligation on a solicitor to ensure that the completion date for purchase of a property is the same as the end date of a prior lease. Completion dates are notoriously hard to predict. The onus was on the tenant to make arrangements with the landlord, prior to the completion of the sale, for what was to occur if there was an overrun in the lease period. However, where there is no continuation of the situation without any agreement, the original lease is taken not to have continued in being until the property was purchased.
Expert:  Buachaill replied 1 year ago.
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Customer: replied 1 year ago.
Apologies but my original question was not 100% clear. There was no original lease - this was not a continuation of an existing tenancy but a new lease with a new tenant in a new hereditament. The tenant had no right of entry or use of the property until after completion on 11/11/14. The lease is dated 11/11/14 as is the licence to carry out works. The date inserted in the lease re commencement of term granted was 17/9/14 and was inserted on 11/11/14 by the landlords' solicitor. The Agreement for lease contained a long stop date of 31/8/14. A Final Certificate was issued by a building inspector dated 16/9/14 after tenant's request to provide one. Tenant is not aware that a practical completion statement was ever issued by the landlord's surveyor or landlord. Landlord's agent on 21/10/14 stated that they were going to set lease commencement at 17/9/14. The landlords solicitor did not provide completion amount details until 24/10/14. As the long stop date had been exceeded should it not have been possible to set the lease commencement at the completion date of 11/11/14?
Expert:  Buachaill replied 1 year ago.
3. This is a different factual situation as the term of the lease is stated to begin on 17th September. This means that the tenant is liable for rent and service charges for the period between 17/9 and the actual entry onto the premises on 11/11. So the tenant's solicitor was negligent in not ensuring that the lease commencement date was the same as the date of entry upon the premises. This is because the tenant is liable for monies when he did not have the use of the premises.