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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience:  Solicitor with 5+ years experience
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I have recently started as bookkeeper new company. They

Customer Question

Hi,
I have recently started as bookkeeper for a new company. They currently sub let their building from another business who went into administration in Feb and the assets were purchased by another company (an old employee of theirs with the old directors still running the business). The new company are trying to chase outstanding invoices for the old one and they have now given us 5 months notice to leave but increased the rent/rates as of immediately by over £1k a month.
There is no written sub lease in place and when I have asked for one I was told it would cost too much money. Where do we stand legally and do we have to pay the increased rent? The business I work for has been in the building for 2 years
Thanks
Submitted: 4 months ago.
Category: Law
Expert:  Ash replied 4 months ago.

Hello my name is ***** ***** I will help you.

Do you know why there was never anything in writing please?

Customer: replied 4 months ago.
It seems to have been set up on a gentlemens agreement as such
Expert:  Ash replied 4 months ago.

was there any agreement with the old company how and if they could increase the rent?

Customer: replied 4 months ago.
No there was no agreement in place. When I have questioned them over the justification of the increase they have just said that they think they have not been charging enough previously
Expert:  Ash replied 4 months ago.

Ok. Well the agreement transfers to the new company. They are bound by the old agreement.

If it was not in writing, nor was there any trigger for an increase then they can not demand one.

They are bound by the terms of the previous agreement. This may have been verbal and not in writing, which is fine, but the fact remains they are bound.

They can not just go through increasing the rent.

Can I clairfy anything for you about this today please?

Alex

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