Comments on: Wave goodbye to your right to forfeit http://www.harrison-drury.com/property/wave-goodbye-to-your-right-to-forfeit/ Harrison Drury is an award-winning commercial law firm with offices in Preston and Garstang. Thu, 02 Feb 2012 13:58:51 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Patel http://www.harrison-drury.com/property/wave-goodbye-to-your-right-to-forfeit/comment-page-1/#comment-2205 Patel Wed, 16 Nov 2011 01:22:39 +0000 http://www.harrison-drury.com/?p=274#comment-2205 Persistent problems with my tenant (of 6 years of commercial unit/ takeaway) regarding payment of rent (paid late, paid less or no payment). The tenant also did not pay the revised rent (only the original) when it was reviewed two years ago for nearly 18 months. I believe probably in view of the lease ending this year and the tenant wanting renewal, the tenant made the full quarterly payment (including revised rent) six months ago. Would this be considered his acceptance of rent review? As the tenancy is coming to an end, I sent section 25 notice to oppose renewal due to substantial rental and repair breaches. Following section 25 notice, the tenant paid the quarterly rent but this time minus the reviewed rent amount. Sent bailiffs for rent recovery but the tenant refused to pay by wrongly disputing previous rent arrears and that the reduced payment for this quarter was due to his disagreement with the rent review. He claims review was implemented unilaterally. Would full payment for last quarter not be considered his acceptance of rent review? Bailiffs have suggested forfeiture but I'm not sure where I stand or if the right of forfeiture has been waived due to tenant depositing rent (minus reviewed amount) in my account. If go ahead with forfeiture could I rent to another tenant with tenants equipment/ fittings. Please advise. Many thanks, Patel Persistent problems with my tenant (of 6 years of commercial unit/ takeaway) regarding payment of rent (paid late, paid less or no payment). The tenant also did not pay the revised rent (only the original) when it was reviewed two years ago for nearly 18 months. I believe probably in view of the lease ending this year and the tenant wanting renewal, the tenant made the full quarterly payment (including revised rent) six months ago. Would this be considered his acceptance of rent review? As the tenancy is coming to an end, I sent section 25 notice to oppose renewal due to substantial rental and repair breaches. Following section 25 notice, the tenant paid the quarterly rent but this time minus the reviewed rent amount. Sent bailiffs for rent recovery but the tenant refused to pay by wrongly disputing previous rent arrears and that the reduced payment for this quarter was due to his disagreement with the rent review. He claims review was implemented unilaterally. Would full payment for last quarter not be considered his acceptance of rent review? Bailiffs have suggested forfeiture but I’m not sure where I stand or if the right of forfeiture has been waived due to tenant depositing rent (minus reviewed amount) in my account. If go ahead with forfeiture could I rent to another tenant with tenants equipment/ fittings. Please advise. Many thanks, Patel

]]> By: Owen Mckenna http://www.harrison-drury.com/property/wave-goodbye-to-your-right-to-forfeit/comment-page-1/#comment-2198 Owen Mckenna Fri, 28 Oct 2011 15:41:55 +0000 http://www.harrison-drury.com/?p=274#comment-2198 Terrence Your comment raises a number of issues in relation to the legality of the forfeiture, the remedy of distress and allowing you access to recover your belongings. These are complex areas of law upon which it is not possible to advise definitively without sight of the lease documents and full knowledge of the facts. I would certainly recommend that you seek legal advise on these issues. Terrence

Your comment raises a number of issues in relation to the legality of the forfeiture, the remedy of distress and allowing you access to recover your belongings. These are complex areas of law upon which it is not possible to advise definitively without sight of the lease documents and full knowledge of the facts. I would certainly recommend that you seek legal advise on these issues.

]]> By: terrence gilligan http://www.harrison-drury.com/property/wave-goodbye-to-your-right-to-forfeit/comment-page-1/#comment-2195 terrence gilligan Tue, 25 Oct 2011 16:52:26 +0000 http://www.harrison-drury.com/?p=274#comment-2195 i forgot to mention that he got the bailiffs in but he stopped the action as they thaught it was an illegal distress, also he has let third parties in since to remove goods most of witch are mine? i forgot to mention that he got the bailiffs in but he stopped the action as they thaught it was an illegal distress, also he has let third parties in since to remove goods most of witch are mine?

]]> By: terrence gilligan http://www.harrison-drury.com/property/wave-goodbye-to-your-right-to-forfeit/comment-page-1/#comment-2194 terrence gilligan Tue, 25 Oct 2011 16:47:19 +0000 http://www.harrison-drury.com/?p=274#comment-2194 my lease expired on 8th april this year, no dicusion was entered into about a new lease, on the 21st of april he pou a forfieture of lease notice on the door, and changed the locks , but wont allow me access to remove my machines and tools, he keeps threatening to sell them to get his rent money, but has not, also he keeps threatening me with court action but wont do it?? i have not earned a penny since april and have lost two contracts, , also im about to have my home repossesed, as a direct result of his actions but he says he is using terms of the lease, can he do this afer a forfieture? i owe him £3.500.oo , yours hopefully ,, ps/ i have a free workshop in the pipeline, so could have paid the arrears off by now, my lease expired on 8th april this year, no dicusion was entered into about a new lease, on the 21st of april he pou a forfieture of lease notice on the door, and changed the locks , but wont allow me access to remove my machines and tools, he keeps threatening to sell them to get his rent money, but has not, also he keeps threatening me with court action but wont do it?? i have not earned a penny since april and have lost two contracts, , also im about to have my home repossesed, as a direct result of his actions but he says he is using terms of the lease, can he do this afer a forfieture? i owe him £3.500.oo , yours hopefully ,, ps/ i have a free workshop in the pipeline, so could have paid the arrears off by now,

]]> By: Urvesh Bhagudia http://www.harrison-drury.com/property/wave-goodbye-to-your-right-to-forfeit/comment-page-1/#comment-2117 Urvesh Bhagudia Mon, 29 Aug 2011 09:27:46 +0000 http://www.harrison-drury.com/?p=274#comment-2117 Hi if you can help me with the matter,I have taken sublease of a resaturant in march 2010,the sub lease is for 5 years,I have ran into rent arears i was behind 4 months rent,I have spoken to my land lord in May 2011 and we have mutually agreed small weekly payment + regular rent till dec 2011 there was no formal documentation has been done. and he has accepted two cheques of £ 360.00. I was going away to india for 12 days on 4th June 2011 for a family function. on 2nd June 2011 evening I received call from my land lord that he is taking over my "Business" as I have not paid him the rent.next day I have taken my solicitors advice,I was talled that land lord has the right to do so.he can lock my premises, but in this case he continued trading under my trade name using my equipments and then staff employed by me, and now sold on my business to some one else who have slightly ultered my trade name and continued trading.My assets and equipments are worth more than waht i owed him also he is demanding that i should surrender my goodwill and assets to him.The case is going on but I need a second opinion he has carried out valuation by his own appointed surveyers and they valued my assets at a very low rate, which in open second hand market has more value and I have offer from another resaturants at higer price. Thank you very much. Urvesh Bhagudia Hi if you can help me with the matter,I have taken sublease of a resaturant in march 2010,the sub lease is for 5 years,I have ran into rent arears i was behind 4 months rent,I have spoken to my land lord in May 2011 and we have mutually agreed small weekly payment + regular rent till dec 2011 there was no formal documentation has been done. and he has accepted two cheques of £ 360.00. I was going away to india for 12 days on 4th June 2011 for a family function. on 2nd June 2011 evening I received call from my land lord that he is taking over my “Business” as I have not paid him the rent.next day I have taken my solicitors advice,I was talled that land lord has the right to do so.he can lock my premises, but in this case he continued trading under my trade name using my equipments and then staff employed by me, and now sold on my business to some one else who have slightly ultered my trade name and continued trading.My assets and equipments are worth more than waht i owed him also he is demanding that i should surrender my goodwill and assets to him.The case is going on but I need a second opinion he has carried out valuation by his own appointed surveyers and they valued my assets at a very low rate, which in open second hand market has more value and I have offer from another resaturants at higer price.
Thank you very much.
Urvesh Bhagudia

]]> By: Owen Mckenna http://www.harrison-drury.com/property/wave-goodbye-to-your-right-to-forfeit/comment-page-1/#comment-2110 Owen Mckenna Mon, 01 Aug 2011 11:33:20 +0000 http://www.harrison-drury.com/?p=274#comment-2110 We cannot give specific legal advice in relation to the matter without full sight of the lease and all supporting documents but in certain circumstances the acceptance of rent by a landlord could potentially constitute a waiver of the right to forfeit but it will depend on the facts of the individual case. I would therefore strongly recommend that you do instruct a solicitor to consider the full facts and to act on your behalf in this matter We cannot give specific legal advice in relation to the matter without full sight of the lease and all supporting documents but in certain circumstances the acceptance of rent by a landlord could potentially constitute a waiver of the right to forfeit but it will depend on the facts of the individual case. I would therefore strongly recommend that you do instruct a solicitor to consider the full facts and to act on your behalf in this matter

]]> By: maria http://www.harrison-drury.com/property/wave-goodbye-to-your-right-to-forfeit/comment-page-1/#comment-2108 maria Thu, 28 Jul 2011 07:54:03 +0000 http://www.harrison-drury.com/?p=274#comment-2108 thanks for your comments...since July i have taken my landlords to the small claims court claiming that they waivered their right forfeiture of lease because if i was in breach of covenant they should not have taken £1000 of the disputed £1400 rent 2 days before changing the locks. I was informed 26th march that if i didnt agree to paying disputed arrears of rent and utilities i was to assume that from 1st April they would forfeit the lease. On 30th April they accepted payment of £1000 and on 2nd May the locks were changed....does this mean they waiver their right to forfeiture...thanks in advance for your comments Maria thanks for your comments…since July i have taken my landlords to the small claims court claiming that they waivered their right forfeiture of lease because if i was in breach of covenant they should not have taken £1000 of the disputed £1400 rent 2 days before changing the locks. I was informed 26th march that if i didnt agree to paying disputed arrears of rent and utilities i was to assume that from 1st April they would forfeit the lease. On 30th April they accepted payment of £1000 and on 2nd May the locks were changed….does this mean they waiver their right to forfeiture…thanks in advance for your comments Maria

]]> By: Owen Mckenna http://www.harrison-drury.com/property/wave-goodbye-to-your-right-to-forfeit/comment-page-1/#comment-2107 Owen Mckenna Fri, 22 Jul 2011 07:36:11 +0000 http://www.harrison-drury.com/?p=274#comment-2107 Maria A landlord's ability to lawfully change the locks and forfeit a lease will depend on the terms of the individual lease. If a landlord wishes to forfeit, there must be an express provision in the lease allowing the landlord to do so. If there is such a provision, the landlord must comply with any conditions or time-scales contained in the lease and must not act in a way which is inconsistent with the lease being brought to an end. As to whether or not a landlord has waived its rights would depend on the specific circumstances and actions of each case. However, in most (if not all) commercial leases tenants are under an obligation to pay the annual rent without deduction or set off and if the landlord has not waived its right to forfeit the changing of the locks could be lawful. There are a number of issues that need to be considered in more detail and I would recommend that you speak to a solicitor about this matter. Regards Owen Maria

A landlord’s ability to lawfully change the locks and forfeit a lease will depend on the terms of the individual lease. If a landlord wishes to forfeit, there must be an express provision in the lease allowing the landlord to do so. If there is such a provision, the landlord must comply with any conditions or time-scales contained in the lease and must not act in a way which is inconsistent with the lease being brought to an end. As to whether or not a landlord has waived its rights would depend on the specific circumstances and actions of each case. However, in most (if not all) commercial leases tenants are under an obligation to pay the annual rent without deduction or set off and if the landlord has not waived its right to forfeit the changing of the locks could be lawful. There are a number of issues that need to be considered in more detail and I would recommend that you speak to a solicitor about this matter.

Regards

Owen

]]> By: maria http://www.harrison-drury.com/property/wave-goodbye-to-your-right-to-forfeit/comment-page-1/#comment-2104 maria Wed, 20 Jul 2011 16:30:16 +0000 http://www.harrison-drury.com/?p=274#comment-2104 I am in dispute with my landlord who has changed the locks due to unpaid rent (the amount was clearly in dispute and the full amount was not paid). The monthly amount was paid by direct debit up until the changing of the locks...is the landlord able to do this I am in dispute with my landlord who has changed the locks due to unpaid rent (the amount was clearly in dispute and the full amount was not paid). The monthly amount was paid by direct debit up until the changing of the locks…is the landlord able to do this

]]> By: Simon http://www.harrison-drury.com/property/wave-goodbye-to-your-right-to-forfeit/comment-page-1/#comment-2070 Simon Sat, 09 Apr 2011 13:27:14 +0000 http://www.harrison-drury.com/?p=274#comment-2070 Hi I own the freehold to a restaurant, let with 6 years outstanding. The last rent due on the 25 March remains unpaid (1k of 7k has been paid). The tenant is a company which operates from a number of units under leases. I am worried about the tenant going into administration, which i believe is probable, and that an administrator if appointed will render me powerless. Earlier this month, due to persistent problems collecting rent for the previous two quarters, I sent a Certified Bailiff in to take walking possession of certain goods. The Bailiff has come back to me and said that HMRC's bailiff has already beaten me to it! As such there are no goods to take a charge over. Quite oddly, I also received a call from Tenant's "advisor" who confirmed my unit is profitable and that they wish to close 5 of the 11 unprofitable ones. Also, that they have a buyer for the profiatable units lined up. No solicitor has contacted me re any such assignment however. I am now thinking of changing the locks and forfeiting the lease as i believe this is tenants only motive is to buy time. I would also consider a winding up order, but as HMRC are already there it is only a matter of time, so why throw good money after bad. If i do change the locks, the lease obviously comes to an end. If however the tenant does manage to survive might i have a claim on them for the outstanding rent for the duration of the lease? Hi
I own the freehold to a restaurant, let with 6 years outstanding. The last rent due on the 25 March remains unpaid (1k of 7k has been paid). The tenant is a company which operates from a number of units under leases.

I am worried about the tenant going into administration, which i believe is probable, and that an administrator if appointed will render me powerless.

Earlier this month, due to persistent problems collecting rent for the previous two quarters, I sent a Certified Bailiff in to take walking possession of certain goods.

The Bailiff has come back to me and said that HMRC’s bailiff has already beaten me to it! As such there are no goods to take a charge over.
Quite oddly, I also received a call from Tenant’s “advisor” who confirmed my unit is profitable and that they wish to close 5 of the 11 unprofitable ones. Also, that they have a buyer for the profiatable units lined up. No solicitor has contacted me re any such assignment however.

I am now thinking of changing the locks and forfeiting the lease as i believe this is tenants only motive is to buy time. I would also consider a winding up order, but as HMRC are already there it is only a matter of time, so why throw good money after bad.

If i do change the locks, the lease obviously comes to an end. If however the tenant does manage to survive might i have a claim on them for the outstanding rent for the duration of the lease?

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