Thank you. We spoke very briefly, and I am happy to speak again when I have all the information from you. You can let me have the lease and the latest correspondence, I can then reply in detail.
Meanwhile, I assume that you have a lease which, when you say “protected” is a lease which is contracted into (that is the default position) the 1954 Landlord & Tenant Act.
It gives you a statutory right to renew.
You are at liberty to walk away at the end of the term by giving the landlord notice you intend to do so if you want to close the business did you can get someone to take it on, you could actually sell the lease to them and they would be renewing it.
There may be a term in the tenancy agreement whereby you have to enter into a Authorised Guarantee Agreement whereby you have to guarantee the performance under the terms of the lease in respect of the new tenant.
In effect the new tenant would be buying the renewal.
The repairing covenant in the existing lease is extremely important because if it says that you are responsible for repairs or to keep the property in good and tenantable condition, and it’s a dump when you move in then it has to be in good condition when you move out.
The words “this clause shall not require the Tenant to put the Property into any better condition than at the date of this Lease” are often not included and that is a very expensive emission and very common in the landlord has solicitors and the tenant doesn’t. That could be why you have been slammed for GBP60,000 of dilapidations.
Even so, the landlord may require the property put back into good condition before he will agree to assign the lease.
In respect of charging a premium, it really comes down to what the lease says because sometimes it is excluded. If it isn’t excluded or mentionedarticularly, then you can do what you like.