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Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7569
Experience:  UK solicitor holding an England and Wales practising Certificate.
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I would like clarification on the following: I have had

Resolved Question:

I would like clarification on the following:

I have had a lease with my current landlord for 27 months, I am running a successful
beauty and hairdressing salon from the premises. In July 2013 I secured a sale of the business for a considerable amount of money, I then made plans to emigrate to Australia, these plans come to fruition in June 2014. The sale of my business was due to complete two weeks ago, there have been delays some of which were requested by the landlord who was trying to buy his partner out of the leasehold business.

At the time of selling my business the landlord agreed in writing to extend the lease by a further 5 years and as such this secured the sale of the business to the new owners.

Two weeks ago, just 2 days prior to expected completion the landlord called a meeting and advised that he was not intending to renew the lease as wanted to redevelop the site.

In turn this has caused the value of my business to be dramatically reduced, to almost nothing.

Please could you advise the following:

1. Where we stand legally
2. Can we apply for compensation, legal fees, loss of business value?
3. Can we force an extension


Regards
Submitted: 3 years ago.
Category: Property Law
Expert:  Thomas replied 3 years ago.
Hi,

Thanks for your question.

What was the original terms of the lease please?

Kind regards,


Tom
Customer: replied 3 years ago.

lease was from 24th December 2002 for a term of 12 years
Expert:  Thomas replied 3 years ago.
Hi

Thanks.

Was the lease excluded from the security of tenure provision of the Landlord and Tenant Act 1954? Ie. no statutory right of renewal.

If so, you would have received a Warning Notice and had to have signed a statutory declaration before you completed the original lease...

Kind regards,


Tom
Customer: replied 3 years ago.

Where would we find that, I took the lease on from another , I have a copy of the original lease, but cannot see any detail other than the term
Expert:  Thomas replied 3 years ago.
Hi,

There should be a section titled something like "EXCLUSION OF SECTIONS 24-28 OF THE LTA 1954".

This section will basically state that the landlord/tenant agree that the provisions of sections 24 to 28 of the LTA 1954 are excluded in relation to the tenancy created by this lease...

It's generally towards the end of a lease, is it there?

Kind regards,


Tom
Customer: replied 3 years ago.

Hi there

I have gone thought the two copies of licence to Assign, so ours and the previous and there is nothing on their, also on the original lease we cannot see anything
Expert:  Thomas replied 3 years ago.
Thanks. Drafting your answer now.

Kind regards,


Tom
Expert:  Thomas replied 3 years ago.

Hi

Thank you for your question and patience, I’m Tom and I’ll try to help you.

You need to find out definitively whether or not the lease is excluded from the above mentioned act. If it is excluded then you have no security of tenure which means that you cannot apply to court for an extension of your lease and you will not be able to claim any monies from your landlord.

If the lease is NOT excluded from the security of tenure provision of the aforementioned act then you have a statutory right to a renewal of lease, which affords you the right to apply to court to get an extension and the landlord can only refuse on limited specific grounds. However, one of the grounds that they can refuse is if they wanted to demolish/develop the land. If he were able to successful refuse on this basis then he would have to pay compensation to you of 1 times the rateable value of the property.

At the present stage you would not be able to sue for monies right now because applying for an extension involves serving notices and counter notices.

It’s complicated area and you need specialist advice in person from a commercial property lawyer who can examine your lease with regard to the above. Basically, if the sale of the business is at a sensitive stage then it’s not likely that your going to be able to sort it out quickly even if the lease is not excluded from the security of tenure provisions of the act I’m afraid…

My goal is to provide you with a good service. If you feel you have received anything less, please reply back as I am happy to address follow-up issues specifically relating to your question.


Kind regards,


Tom
Customer: replied 2 years ago.
Hi there I am so sorry for the delay in coming back to you

I now have further information and questions would you be able to anser
Expert:  Thomas replied 2 years ago.
Hi,

Well, I have provided my original answer about three weeks ago which you have not rated.

I will answer you brief follow up questions though.

Kind regards,

Tom
Customer: replied 2 years ago.
Apologies , I will rate as soon as we have closed the enquiry is that ok ?
Expert:  Thomas replied 2 years ago.
Yes, that's fine but my ability to reply is going to be a bit up and down over the next two hours, so you might have to be a bit patient.

What do you want to ask?

Kind regards,

Tom
Customer: replied 2 years ago.
I have sold a business, a new 5 year lease was agreed, 3 days I have sold a business, a new 5 year lease was agreed, 3 days before completion the landlord announced he was refusing to renew the lease or allow the reassignment , I have a section 25 notice within which the landlord states 1. If I apply to the court 1. If I apply to the court to order the grant of a new tenancy he will oppose on grounds of paragraph f of section 30 (1) of that act.

2. He further states he may have to pay me compensation if he has relied on one or more of the grounds mentioned in paragraph e, f g of section 30(1)


My question is am I entitled to compensation and if I am what would it be

The premises have been a hairdressers since 1974, I am advised that compensation could be twice the rateable value

Would you be able to confirm that

Many thanks Thomas

Expert:  Thomas replied 2 years ago.
Hi,

Yes, that's correct (2x rateable value). He would have to pay that if he were successful in with his refusal to grant.

If you were successful in defending it and got yourself a new lease then you would not have to pay you compensation.

If considering defending then you should instruct a lawyer directly because this is a really specialised and technical area.

Kind regards,


Tom
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Experience: UK solicitor holding an England and Wales practising Certificate.
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