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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My company has a tenancy agreement with a company that lets

Customer Question

My company has a tenancy agreement with a company that lets out serviced offices. In Feb 2015 we signed a 24 month contract at an agreed price. The letting company was taken over in August 2015 but we continued as we were. They are now moving us out to a different location and are charging a higher price. Can they do this given our existing contract which was for 24 months?
Submitted: 1 year ago.
Category: Property Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you with this.
What does your contract say about being moved please?
Alex
Customer: replied 1 year ago.
To be honest I'm not sure - I'll need to double check. However the purpose of the length of the contract was to agree with fixed price for that period, hence my question.
Expert:  Ash replied 1 year ago.
Ok, assuming the contract does not allow for a price increase, ie its fixed then they can NOT charge higher rent.
They would be in breach of contract. Therefore unless they can move you and charge higher rent (it would be in the contract) then they are stuck for current rent until February 2017. The contract is a signed and binding document for both parties.
Can I clarify anything for you about this today please?
Alex
Customer: replied 1 year ago.
Thanks for your help - they had promised a like for like office in relation to moving us. However they only have offices left that are larger than our existing one. As a result they want to charge us more. I need to locate the contract and check what it says. If we request them for a copy of the contract are they obliged to provide it?
Expert:  Ash replied 1 year ago.
Yes they are required to provide it. But sounds like they cant increase the rent.
Does that clarify?
Alex
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Customer: replied 1 year ago.
Yes it does. Thank you for your help
Expert:  Ash replied 1 year ago.
Good luck!
Alex
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Customer: replied 1 year ago.
Further to this query, the contract states that the landlord can terminate it with 30 days notice (attached is the relevant term from the contract). We were given 8 days notice that we had to relocate and sign a new lease (as it was for a larger room).Given the short notice, we have been forced to relocate to the new property to minimise disruption to the business. I have not yet signed a new lease agreement as I am uncertain if my existing contract, valid until 2017, will apply and what my options are under the existing agreement.Given that the contract can be terminated with one month's notice, it appears as though they could in theory terminate it and offer us a new lease at a higher price which we are not obliged to take. However given the short notice, we're now a bit stuck - do we have any options?
Expert:  Ash replied 1 year ago.
You could sue for breach of contract as the Landlord has failed to comply with the obligations under the old contract.
Does that clarify?
Alex
Customer: replied 1 year ago.
Thanks - but what sort of benefit would I be looking at really? It would be hard to show any particular damages I've sustained given I have to continue to run the business so will either have to take up their new lease or find an alternative location immediately.
Expert:  Ash replied 1 year ago.
Higher rent etc, if you had to pay that, business disruption.
Alex

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