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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 13851
Experience:  I have been practising for 30 years.
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I have come to the end of a protected lease. I can’t afford

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I have come to the end of a protected lease. I can’t afford to continue so I wanted to reassign the lease hopefully with a premium is this possible?
Assistant: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: I started wrongly. I informed the landlord that my company was in trouble and that I wanted to end the lease. They responded with a delapidation bill of £60,000. . I said I would do the work to their satisfaction. They have now replied with a letter saying I need to formally end the tenancy. At this point I sought legal advice and the solicitor told me I had a protected lease and I should negotiate with the landlords solicitor by finding a suitable tenant to assign the lease to. They said I may be able to ask for a premium for the lease. They advised to tell the landlord this and appoint a commercial agent to find a buyer.
Assistant: Have you talked to a lawyer about this?
Customer: the above was solicitors advice
Assistant: Anything else you want the Lawyer to know before I connect you?
Customer: I don’t think so
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Nicola

Good morning. I wil assist with your question - be aware this is an email not chat service therefore maybe delayed in replying.

for background -

what is the business?

how long have you had lease?

did you know about the delapidations?

F E Smith, Advocate
Category: Law
Satisfied Customers: 13851
Experience: I have been practising for 30 years.
F E Smith and 3 other Law Specialists are ready to help you
Customer: replied 6 days ago.
Good Morning,
It was a printing business. I have had the lease since 2009 with this company and had it prior with a mow shut down company from 2001-2009.
The delapidations are mainly about soiled carpets, floors and ceiling lights. All of which they Are charging a very high price but I am happy to do myself.
This lease has run out in March 2019. Our company has severe financial problems and I need to close it once this issue is resolved.
I wanted to make the landlords solicitors aware that I want to make a payment plan towards the rent. I also want to approach commercial agents to find a buyer so I can assign the lease, possibly get a premium, so in that time the delapidations are complete and once the new buyer pays, I can pay the outstanding Lsi to the landlord.
Up to now I have not signed the statutory notice to end the lease. I only informed them verbally on 18 June and they have told me this is not the correct notice.

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.