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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Brief story- we operated a pharmacy business as a sole

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brief history- we operated a pharmacy business as a sole trader from oct 1999 to april 2004, when we converted into a company. we had a lease prepared and paid rent once we became a company. we carried on the compant business and sold the business to a large chain in 2008. the lease expired this year and we gave the company a section 25 notice in good time.
They have moved out at end of lease and are entitled to the compensation under section 37 of the Landlord and tenant act 1954. they are asking for a multiplier of 2 rather than 1. the argument being that the pharmacy business has been carried on by the occupier for more than 14 years, regardless of the change of identity of the occupier. The question is whether the period where we traded as a sole trader and didnt pay any rent can be included in the 14 year period.

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

Was the lease signed only when you were a Ltd company or beforehand please?

Customer: replied 1 year ago.
the lease was signed after we converted to a limited company and not beforehand. As a sole trader prior to the limited company there was no rent payable . we technically were just occupiers.

From what you have said, the period where you didnt pay rent cant be counted. If you had paid rent then you would have an argument to say it should be included. But on the basis you didnt pay rent, you cant really 'double dip' as it were, because you would not be paying rent and getting compensation.

I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.

Can I clarify anything for you about this today please?

Customer: replied 1 year ago.
Thanks for the reply. I think there is some confusion here. I am the landlord of the property and the tenants are demanding the compensation from me. In effect , your answer seems to be in my favour if i can argue that the period prior to the lease cannot be counted in the 14 year period. Can you confirm this and if we were to argue this can legal charges be claimed by the tenant if they insist on taking me to court. I have attached a page from the lease. Does the paragaraph e and f have any bearing on the lease.

Yes I would agree, its in YOUR favour. They have not had a lease since before the business. Therefore its not included.

Does that clarify? Alex

Customer: replied 1 year ago.
With the 2 paragraphs that i sent as attachment, do they bear me with any more power as to the demands on the compensation

They are entitled to compensation but not BEFORE the lease started.

Does that clarify? Alex

Ash and 3 other Law Specialists are ready to help you
Customer: replied 1 year ago.
thank you very much

All the best. Alex