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Joshua, Lawyer
Category: Law
Satisfied Customers: 26070
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I have a hairdressing unit in a small mall. I am the only tenant

Customer Question

I have a hairdressing unit in a small mall. I am the only tenant - the last tenant was asked to vacate some 18months ago. i have security of tenure. The owner of the building has invited me to vacate the unit. I was offered a sum of money to leave ( not enough to finance the move or shop fit let alone compensation) The area, including my unit is up TO LET with an agent. It is proposed to Proceed with building work in the mall ie rip out existing shop fronts to present it as one empty space to prospective tenants. I continue to pay full rent and service charge in a morgue of a building.
What are my rights
Submitted: 2 years ago.
Category: Law
Expert:  Joshua replied 2 years ago.
Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience. May I ask the remaining term on your lease please and whether there are any break clauses in your lease?
Customer: replied 2 years ago.

2 years 6 months

Customer: replied 2 years ago.

sorry no break clause

Expert:  Joshua replied 2 years ago.
Many thanks. on the basis you are occupying the premises for business purposes which clearly you are from what you say, and the lease contains no break clauses the landlord can take advantage of between now and the end of the term, the landlord cannot force you to leave the premises at any time during the remainder of your term and you are free to negotiate as you wish or not for any premium from the landlord to reacquire the lease from you. In other words, if the landlord makes you an offer or you negotiate an offer you believe makes it worth your while in agreeing to leave early, there is nothing preventing you there is no requirement or means by which the landlord can force you to give up your tenancy early and there are no rules that dictate how much or how little you can ask for in order to move out early. Come the end of your term, if your lease is not contracted out from part two of the landlord and tenant act - it may be contracted out if there is determine the lease that states that the leases excluded from the security of tenure provisions of part two of the above act and you saw a statutory declaration before you took on the lease to state that you understood that you are taking on a contracted out lease - then as you suggest, you will have a right to renew the lease on market terms come the end of the existing term. The landlord can oppose renewal if he can show that he proposes for example to redevelop the site which is possible from what you say though he would need supply more details as to the proposed redevelopment. However, even if you were to successfully oppose renewal at the end of your term, he would need to pay you compensation for the loss of your security of tenure which would either be one times or two times the rateable value of the premises. However, this is not relevant to the stages you still have 2 1/2 years remaining on your term and the landlord has no rights whatsoever until the end of your term to oppose renewal take any other action. From your perspective, you will need to consider if there are no other shops or few other shops in the mall, that this may have an impact on your trade and therefore you may wish to leave yourself open to negotiations with the landlord but such negotiations will be founded on how keen the landlord is to reacquire the premises from you and how keen or not you are to relocate your business in the circumstances. If the circumstances are not having much effect on your trade and you do not believe that they will, then you may consider sitting out and waiting for the landlord to make you a more generous offer or of course you may consider just not leaving at all almost irrespective of how much the landlord is prepared to offer. I hope the above is of assistance? If you have no further questions for now I should be very grateful if you would kindly take a moment to click to rate my service to you today or just reply back to let me know if the above is helpful. Your feedback is important to me. If there is anything else I can help with please reply back to me I'd be very grateful
Expert:  Joshua replied 2 years ago.
I hope the above is helpful? Can I help you with anything else or has the above answered your questions satisfactorily? If you could drop me a quick message to let me know I'd be very grateful.