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Joshua
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 26003
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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Commercial property. I have a tenant whos 12 month lease ran

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Commercial property. I have a tenant who's 12 month lease ran out in April this year 2012. We sent them a Notice to quit on the 26th February, giving them six months notice from the end of the lease( therefore to move out by the end of October) They were happy with this, but have now sent a letter saying they intend to remain in the property and will fight any attempt to recover possession. How do we stand? We are wanting to now use the property ourselves. They also carried out works on the property without written permission from ourselves. They no longer have a lease. The original lease stated a twelve month term.
Submitted: 4 years ago.
Category: Property Law
Expert:  Joshua replied 4 years ago.

Josh-2010 :

Thanks for your question. Please kindly RATE my answer when you are satisfied

Josh-2010 :

Is the lease contracted out of part 2 of Landlord and Tenant Act which gives renewal rights please?

JACUSTOMER-eqeqmen1- : No . There is no renal clause
Josh-2010 :

Thanks. Is the lease a contracted out (of part 2 L&T Act) lease - i.e. you went through the formal process required when granting the tenancy in terms of notices etc for it to be a contracted out tenancy?

JACUSTOMER-eqeqmen1- : The lease says that he has to give back the property at the end of the term, in the state that he occupied it.
Josh-2010 :

Thanks. I am sorry to ask again but in order to be certain I will need confirmation that the lease is a contracted out lease. Are you certain on this point please? If you are not sure please do say.

JACUSTOMER-eqeqmen1- : Sorry I do not know what you mean by a contracted out lease
Josh-2010 :

That's fine. Essentially If the lease is a business lease, the tenant has statutory rights to remain in the property, even after the term of the lease unless the lease is expressed to be outside Part II Landlord and Tenant Act (known as a contracted out lease). If it is a contracted out tenancy it will say in the lease that part II L&T is excluded and a specific procedure is required to be carried out by your solicitor before the lease begins. Do you know or recall if the lease was contracted out or can you see any reference in the lease as above?

JACUSTOMER-eqeqmen1- : Will check.
Josh-2010 :

Thanks

JACUSTOMER-eqeqmen1- : Checked and it does not mention anything you have said.
Josh-2010 :

Thanks. This suggests that the tenant has security of tenure unfortunately which means that providing the tenant is able to pay a market rent for the property you can only evict him under certain circumstances, namely:
a) The tenant's failure to comply with repair and maintenance obligations.
b) The tenant's persistent delay in paying rent.
c) The tenant is in substantial breach of its obligation under the lease.
d) The landlord has offered the tenant alternative premises.
e) The current lease is a sub-lease of part comprised in a superior tenancy and the landlord is the owner of the reversionary expectant on the termination of that superior tenancy and the landlord could obtain a higher rent if they let the property as a whole.
f) The landlord intends to demolish, reconstruct or carry out substantial work of construction at the property.
g) The landlord wishes to occupy the property itself, either as a business or a residence.

JACUSTOMER-eqeqmen1- : That's what we want to do. We want to use the property ourselves and advised him of this. Also he has done work in the property without written permission
Josh-2010 :

Thanks. Have you served a s25 notice on the tenant to date or was the notice a notice you wrote out yourselves?

JACUSTOMER-eqeqmen1- : Yes just a notice we did ourselves.
Josh-2010 :

Thanks. To bring the lease to an end you need to give the tenant 6 months notice in the form of a s25 notice in which you must indicate that you oppose the renewal of the lease and the reason why which must be one of the above grounds.

Josh-2010 :

If they challenge your right to refuse a new tenancy then the matter will have to be decided by a court. The court will expect you to be able to show that your plans are genuine and have move passed the "idea" stage and you have started to put them into practice so far as possible without the premises being recovered at that stage.

Josh-2010 :

There are many online precedent sites you can obtain the notice from e.g. here:

Josh-2010 :

http://www.lawdepot.co.uk/contracts/lease-notice-forms/

JACUSTOMER-eqeqmen1- : Do we have to give him another six months notice or can we include the notice we have just given him as he has had four months already.
Josh-2010 :

Providing you can genuinely show as above that you intend to occupy the property yourselves you will be able to oppose the tenants request for renewal. You will have to pay compensation to the tenant at 1 x the rateable value of the premises if he has been there less than 14 years or 2x if more.

Josh-2010 :

I am afraid the notice you need to give the tenant is prescribed by statute and must be in a specific form. If your notice differs from the prescribed form it will have to be done again I am very sorry to tell you.

JACUSTOMER-eqeqmen1- : That's ok thanks for your advise.
Josh-2010 :

You may refer the tenant to the above grounds for opposing renewal and may consdier showing your plans to him so he can see you are genuine in those plans. If he goes to see a solicitor his solicitor will likely ask him this so it can be useful to show the tenant such plans so he can answer his solicitors question accordingly.

JACUSTOMER-eqeqmen1- : Ok thanks
Josh-2010 :

Does the above answer all your questions or is there anything I can clarify or help with any further?

JACUSTOMER-eqeqmen1- : No that's great thanks Josh.
Josh-2010 :

Thanks. If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with though please reply back to me though.

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