Wave goodbye to your right to forfeit
Posted by Owen McKenna Apr 12th, 2009, in Property
You only have to look at the high street and read the newspapers to see that the number of empty premises has increased and tenant administrations are on the rise. Clearly, in today’s economic climate there are a number of new challenges facing landlords and tenants of commercial leases. One such challenge facing a landlord is what to do in the event of tenant breach.
Forfeiture is a landlord’s right to re-enter the premises and determine the lease on breach by the tenant of its lease covenants or upon the happening of certain specified events. The right is not automatic, it exists only where the lease expressly includes such a right. Most commercial leases however will contain a clause thereby allowing the landlord to re-enter the premises on the happening of specified events.
Before a landlord proceeds to forfeit a lease, it should consider carefully the consequences of so doing. In a rising market a landlord should have no difficulty in subsequently re-letting the premises. However, in a falling market, re-letting premises may not be so easy and as a result of the forfeiture a landlord may be left with an empty property on their hands for a long time, and of course following the recent legislative changes, a potential business rates liability. Nevertheless, forfeiture remains an important tool in a landlord’s armoury in the event of tenant breach and the challenge for a landlord therefore is to avoid losing or “waiving” the right to forfeit.
A landlord will be prevented from forfeiting a lease if it has expressly or impliedly waived the right to forfeit. A landlord will still be able to pursue other remedies but will have lost the right to forfeit. Waiver will be implied in the following circumstances:
• A landlord knows of the relevant breach; and
• A landlord (or its agent) does some unequivocal act which recognises the continued existence of the lease, and that is communicated to the tenant.
Waiver is not a however a question of intention. So long as the act is inconsistent with an intention to determine the lease the motive for the act is irrelevant.
Waiver operates in respect of past breaches of covenant. Generally waiver will be relevant only in the case of “once and for all” breaches (for example unlawful assignment/subletting or unlawful alterations), where in the event of waiver the right to forfeit is lost forever. If however the breach is of a continuing nature (for example failure to insure or failure the keep premises in repair) the right to forfeit, though waived on one occasion, will arise again.
The number of cases that have come before the courts over the years on the issue of waiver is significant but unfortunately uncertainty remains. Circumstances which have been held to constitute waiver include accepting rent due after the date on which the right to forfeit arose, demanding rent due after the breach, enforcing other covenants in the lease or granting licence to assign or sublet. Since waiver is not a question of intention and as a landlord is deemed to have the knowledge of its employees, an accounts team for example sending out rent demand or banking a cheque at the wrong moment may result in the loss of the right to forfeit.
The safest course for a landlord on becoming aware of a breach if it wishes to preserve its right to forfeit, is not to make any demands for rent due after the breach and to refuse to accept all rent.
Please do not hesitate to contact me if you require any further information on the issue of forfeiture or waiving the right to forfeit.
38 Comments
By Owen McKenna on April 15th, 2009
Hi Liz
Forfeiture is a process by which a landlord exercises a right contained in a lease. The right to forfeit exists only where the lease expressly provides for it: if there is no written lease the landlord cannot have a right to forfeit.
The bailiff’s reference to the Rent Act 1988 and the Human Rights Act 1998 is incorrect. There is no Rent Act 1988 although there is a Housing Act 1988 but this applies to residential properties and not commercial premises. Furthermore, the Human Rights Act 1998 does not convey a right on a landlord to evict a commercial tenant.
The common law argument is less clear and it is possible that the landlord may theoretically have an argument that a repudiatory breach of contract has taken place i.e. the non-payment of rent, which has given the landlord the right to terminate its obligations under the contract. Before being able to advise further a full investigation of the facts would be required.
Please give me a call if you wish to discuss further.
Owen
By alex bashir on December 1st, 2009
Club premises. Commercial Lease.Tenant not paid rent for over a year.Lease have expired.Tenant is in breach on several Lease clauses.Local Authority rates the property as a commerecial premises.
Bailiffs were instructed to forfeit the lease and secure the premises but on arrival were met by the son of the tenant(who is unknown to the Landlord) claiming he is living on the premises and that is not moving.
Landlord wants the property back without going to Court (the expense).
Any advice Please
By David White on December 17th, 2009
Hi
I took on a commercial lease in a shoping mall. The landlord granted further leases to similar business and we suffered as a consequence. We discussed this with our landlord who didnt want to know and offered no support. We closed the shop and now the landlord is threatening court action to recover outstanding monies. I call round to the unit today and the landlord was using the unit as storage for a subcontractors equipment!! Can he do this? Is this a breach on his part?
Your advise would be appreciated.
By John Chesworth on December 22nd, 2009
Hi Alex
I have seen your earlier comments and I think there is a major problem with the individual who is claiming to occupy the property as a residence. If a court found as a fact he was occupying the property as a residence they would also find that any eviction without a court order was unlaful.
If you have evidence that his claim to occupy the property as a residence is a sham, then you could take a risk and seek to reposses by peaceable re-entry when he is not present at the property. However, this is an extremely risky strategy, the compensation that a court would order would far exceed the £750 – £1000 plus VAT and court fees it would cost to get a possession order and ensure the landlord keeps on the right side of the law.
Regards
John
By John Chesworth on December 22nd, 2009
Hi David
You post raises some interesting points. There have been cases where a landlord of a shopping mall was held to have been liable to a tenant where his letting policy had damaged the tenant’s business. If the landlord had given you assurances that he would not let to similar businesses you may have a case. However, a detailed examination of your lease and the facts of the case would be required before advice could be given on this topic.
In relation to the landlord’s use of your premises as storage, this appears to me have been an act of forfeiture by taking possession. Has the landlord changed the locks? He is entitled to do so if the lease has a forfeiture provision and the rent is over due by the number of days stated in that provision.
If the landlord has changed the locks and lawfully forfeited the lease, then no future rent will be payable, although you will be liable for all rent that fell due up to the date he forfeited the lease.
I hope this helps.
John
By Barry Watkins on January 21st, 2010
I have a ten year lease on a commercial industrial unit with a 6 year break clause and was signed in my personal name January 2009. The rent was due on the 25th December 2009 of £3120.00 and a clause in my lease says that if after 14 days if the rent has not been paid that the landlord can regain peaceful entry.
I wrote to the landlord by hand and this was posted by hand at the beginning of some 14 days to his home address stating that I have been ill for some time and away having treatment and that I am fully recovered but cash flow at the business has suffered due to the fact that I have not been chasing monies owed.
Staff arrived today to find a notice on the door from a company called “County Bailiff Company” stating my name and “PURSUANT TO CLAUSE (18) OF YOUR LEASE DATED THE 30TH JANUARY 2009 WE ARE AUTHERISED AGENTS OF THE LANDLORD HAVE THIS DAY RE-ENTERED THE PREMISES DEMISED BY THE SAID LEASE AND THE SAID LEASE IS THEREBY DETERMINED ABSOLUTLY”
Several points, I have phoned the bailiff 7 times and explained and also there is a cheque that has been ready at the office for the rent and in fact is £1200 cash there if required but they have just said they will get back to me.
The landlord hold £5000 as a deposit in a bank account under no scheme, I have received no notification by recorded or proof of delivery, however my personal post has still to be cleared, which ironically is at the office but there have been no recorded delivery items.
Can he do this? and can I gain peaceful re-entry?
The only other thing is as I believe he is doing this for an alternative motive in that he has the unit next door but that needs 3 phase and gas which on a new tenancy with a caterer he has let it too saying it has but it does not have either in the correct voltage or supply and will cost over £8k to have the road lifted just for the 3 phase.
Regards
Barry
By Ramin on January 30th, 2010
Hello…HELP NEEDED!
I have a tenant who has breached his Lease on many counts. He has turned part of the office into a residential unit and sub-let it. His Lease states that the unit is for office purposes only and no alterations can be made without written consent and strictly for office use only. He has applied for planning consent with the local authority – again in breach of lease- and they have refused. I am the lease holder and the freeholder has served me a Section 146 notice some time ago and I have done the same with the tenant. The local authority has now served an Enforcement Notice on all of us too.
I have been accepting his rent throughout this process as it’s been going on for over a year and a half. Plus Solicitors fees but nothing has been done. Now my tenant’s company has gone into liquidation and forfeiture is a clause under the Lease if such happens. I have served a fresh section 146…Am I able to go in and evict the tenant by myself when the Section 146 date passes and nothing has been done to remedy the breaches? I stand to lose a lot of money and can’t afford to.
Kind Regards
Ramin
By Lorraine Gordon on February 23rd, 2010
My landlord forfeit my shop lease meanwhile i was sick in hospital he had six months deposit for me and i owed him for six months 24th february 2010. romorrow i still have 13 years remainingon lease can i get any money from the landlord for remaining time or what else can i do to recover some money from this lease i have paid a lot of money for this shop lease please help
By James on April 7th, 2010
Just a quick query, we are a sub tenant in a commercial premises (A2), our head landlord has gone into receivership, we were in the process of assigning the lease for a longer term on the Landlords behalf, are we still liable for the rent until the conclusion of our lease or can we walk away and take another premises as I have no idea who or what the new landlords will be like if the bank sells the property on.
Thanks for your help in advance.
James
By Owen McKenna on April 12th, 2010
James
Your contractual relationship remains with your immediate landlord and therefore unless you take an assignment of the headlease you will not have a direct contractual relationship with the headlandlord. Under the terms of your sublease I would expect that you will be required to continue to pay the rents and perform the sub-lease covenants for the remainder of the sub-lease term or until the sub-lease is assigned by you or determined early by agreement (i.e. by way of a surrender).
Regards
Owen
By Emma Doye on May 11th, 2010
I have a 999 year lease on a property. 3 years ago the insurance on the premises was withdrawn and I was instructed to sort my own insurance and a schedule of delapidations imposed. We began work to repair the premises, but eventually ran out of money. We recently received a letter requesting money (for 3 years insurance, although this was not stated) and then our lease forfeited and peaceful re-entry effected for non payment (of rent). Demand was then made for further costs. Whilst corresponding with the lawyer we also sent a cheque to the landlord, which he has cashed. Does this thus constitue a waiver of forfeiture? If so can I just demand return or supply of the new keys (door and lock was changed on re-entry). Long winded, I know, but your advice would be appreciated.
By Owen McKenna on May 22nd, 2010
The fact that the outstanding arrears have been tendered and cashed by the landlord after peaceable re-entry has been affected does not amount to a waiver of forfeiture because forfeiture cannot be waived after the event. It is also worth noting that forfeiture only concerns performance of ongoing or future obligations, it does not relieve the tenant from liability for existing breaches at the time of the forfeiture so the arrears remain due and owing.
However, assuming that this lease was forfeited solely on the grounds of non-payment of rent, the fact that the arrears have been paid may be sufficient to entitle the tenant to obtain for relief for forfeiture provided that the tenant is still within the six months deadline for making that application. Although I would point out that relief from forfeiture is an equitable remedy which is at the discretion of the Court and it is common for the Court to require the tenant to pay any interest on the arrears and the costs of forfeiture as a condition of granting relief where the lease has been forfeited for non-payment of rent. It may well be that in this instance the court will also impose further conditions relating to remedying any other existing breaches (such as the insurance and repairs) even if they were not originally relied upon as grounds for forfeiture.
By Zeev Pollack on June 30th, 2010
Does a ‘rent authority letter’ (following the transfer / new ownership) in itself amount to a waiver?
For example: rent due 25 June, rent authority letter for new landlord sent on 1 July, tenant doesn’t pay and the 14 days to forfeiture for non payment expire on the 10 July, may new landlord forfeit for non payment?
By Janet Smith on July 26th, 2010
Our landlord was advised of a meeting of creditors in order for our company to enter into a CVA. On the Friday before the meeting (to be held at 10am Monday) after we had left the office, the Landlord placed a forfeiture notice on our door and changed the locks. Our CVA creditors meeting had to be held in the stairwell of the building and granted. The landlord is not allowing us access to remove our files and contents. We have requested 2 days to dismantle & move everything, however the solicitor has come back to us twice 1 day before the day they say we can go in. What can we do?
By Emma Doye on August 8th, 2010
Following on from my previous query, I have written to the landlord and his solicitor seeking to gain a peaceful and less. mostly resolve to the peaceable re-entry.
The solicitor is demanding costs for new door etc.,, but is also seeking costs for preparing a Schedule of delapidation 3 years ago, another schedule (which I argue was a waste of time as its purely an inventory of a building site -as the builders absconded mid job) as well as their fees and other quantified amounts and my preparation of a deed to negotiate. These costs are several thousands (versus the £800 insurance which was queried by us and paid as soon as able) these costs would easily eat up 25% of the finance we’ve managed to raise to complete the works on the project and place the success of the completion in serious jeopardy.
How would you advise we best proceed to gain back our building (which we owned on a 999 year lease) quickly and cost effectively?…(the solicitor says they will “robustly oppose any attempt to fight their terms of re-entry).
Your best advice would be greatly appreciated.
By Paul Jones on August 9th, 2010
Good Afternoon
We are a sub tennant in a commercial property and have recently defaulted in paying our rent.
A couple of weeks ago we turned up to the property to find out the locks had been changed.
We struck a deal with the property owner stating as long as we pay a set amount each week we can have the keys back.
We have now done the deal but have now received a bill from our immediate landlord for £750.00 for bailiffs fees and a locksmith fee.
We did not have any warning to say they were coming is there fee lawful.
By Nigel on August 25th, 2010
What a tremendous site for both landlords and tenants. I am a lanlord and have a tenant who has defaulted on a commercial lease approx half way through it’s term, he left the property owing a full qtrs rent £4000 and approx £5000 of damge to windows and interior fittings. I have issued him with a default of lease notice which has now expired and now I want to take to court for the oustanding rent and the expenses I’ve incurred to put the property back in to a rentable condition. My question is this, if I take him to court and win and he still doesn’t pay what can I do then?? Or am I just left with a legal bill and no of enforcing payment from him?? Many thanks for your help.
By Julie Rothwell on September 20th, 2010
Looking for urgent advice! I am the lessee of a public house and have over 3 years left to run on my 10 year lease. During July I asked my Pubco for urgent help to keep my pub trading through extremely difficult times and am still awaiting the outcome of our meetings and correspondence, no answer has been given. My rent and trade account are in arrears though I hoped we could work something out, I have been here for 11 years. Meanwhile Pubco have served a S146 notice and have now applied to the Court for possession on the grounds of forfeiture. I do not have funds to pay for legal representation and so will have to represent myself at the hearing. Is there any help or advice available in these circumstances? Many thanks.
By Owen Mckenna on September 21st, 2010
Thank you for your message.
The lease between you and your landlord created a legal obligation on you to pay rents and perform the lease covenants for the contractual 10-year term. If the business no longer provides you with sufficient funds to pay the rents and perform the other lease obligations you will need to consider whether you can realistically carry on as tenant of the pub. If you were to consent to possession by the landlord, this action will at least limit the costs you are liable to pay to the landlord as the landlord cannot claim for future rents – the landlord will only have a claim for rents up to the point of forfeiture.
I would suggest that for a detailed legal advice on your options you consult a local lawyer of the Citizens Advice Bureau.
Regards
Owen
By zakariah on January 21st, 2011
Need some factual advice urgently. The Solicitors talk to seem unclear ? I am a Tenant of just under 2 years for a commercial unit.I got into 1 month arrears for rent £800. The landlord forced entry one night after work and changed all locks and I cannot get in to my rented unit. The landlord claims he has seized all property in the unit my work tools as I am car mechanic and customers cars. He says he will sell them to recoup costs he is also charging me rent and my debt is increasing.
He has accepted part payments of rent from me but as I cannot get into the unit to work I feed him cash rent payments of £400 pounds a month and this has been going on for 5 months he keeps on adding further rent for every month. he has totted up £5000 rent arrears for 5 months odd that he has locked me out of my unit. My customers are demanding their cars back but he refuses to give them back. The police say its a civil matter. what can I do ? any genuine good advice would be appreciated. The landlord changed the locks himself he did not instruct baliffs to change locks.
By zakariah on January 21st, 2011
sorry I forgot to mention the original lease I signed for 12 mths has expired and I think I am on a periodic tenancy now as I did not sign a new lease.
By John Chesworth on January 24th, 2011
Hi Zakariah,
Owen is on leave this week so I have picked up your query in his absence.
I am presuming that your original lease had a forfeiture clause allowing the landlord to re-enter the premises if rent is a given number of days late. I am also assuming that your lease had the benefit of the protection of Part II of the Landlord and Tenant Act 1954 and as such it continued on the same terms after the original 12 month period ended.
From what you have said your landlord is acting totally unlawfully. When he forced entry into your property and changed the locks, he terminated the lease through the forfeiture provisions referred to above. After that point he had absolutely no power to seize or withhold your goods and is acting unlawfully in refusing to allow you to collect them. A landlord only has the right to seize a tenant’s goods for non-payment of rent during an existing tenancy. In your case the tenancy in all likelihood ended as soon as the landlord re-entered the premises.
Further, the minute a landlord terminates a lease by forfeiture he can no longer charge for any rent that falls due after the day he terminated the lease. Once a lease is terminated the tenant is only liable for the rent that fell due to be paid before the date of forfeiture.
Your legal remedy will be to obtain and an injunction to recover your goods, but you must act swiftly. I strongly recommend you speak to your solicitor to start matters moving as soon as possible.
Best of luck.
Regards
John
By Faz on February 19th, 2011
A friend of mine is a landlord of a commercial shop. A Law Society Lease was granted to the tenant and a Rent Deposit Deed was taken for three months advance rent.
The tenant gave the shop to a subtenant. Who my friend was going to grant an assignment of the lease to through solicitors, which the transaction had begun but is not completed. The landlord had been accepting the rent from the sub-tenant for the last three years.
The Rent Deposit Deed held from the main tenant was not transferred to the sub-tenant. The sub-tenant has returned the shop key and left. The shop is locked and vacant.
The main tenaant is ringing the landlord and requesting that the Rent Deposit Deed funds are returned to him.
The landlord wants to forfiet the lease, if that is the correct procedure to follow and run his own business from the shop.
What is the best course of action to take at this point.
The sub-tenant has not paid one month’s rent. There are repairs to be done. The sub-tenant has also taken the boiler when leaving.
By Nicos Lemonaris on February 21st, 2011
I was wondering if you could help me with a query. Five years ago 2/12/05 I obtained a joint lease for ten years on a commercial property. A deposit deed was also made for the sum of £6250. Rent review to be made at five years. The relationship of the person I obtained the lease with is now non-existent, due to stealing from the business and illegal goings on at the premises. I have tried to be reasonable with this person and offered 3 options. I buy him out, he buys me out, or we sell the business. His response was ‘I don’t care, do what your going to do’. He has not co-operated for the rent review. I have informed the landlord, but he says we should deal with it. So a rent review has not been concluded, and our depoisit has not been returned, which the deposit deed says should be returned two weeks after the anniversary of the fifth year. My question is this. If I stop paying rent and walk away, or the landlord forfeits the lease, am I liable for the rents for the remaining term of the lease. Thanks in advance. Have a great day. Nick
By Owen Mckenna on February 21st, 2011
Faz
Your comment raises a number of points …
As a general point an assignment of a lease can only be made in writing and if an assignment of the lease has not completed then the original tenant is still responsible for the payment of rent and the performance of the lease covenants. Furthermore, a tenant under a lease will remain liable to its landlord notwithstanding that it has granted a sub-lease. A tenant would need to pursue its sub-tenant for any breaches.
As for the Rent Deposit Deed, the Deed itself will govern when the deposit monies are to be returned to the tenant and the circumstances in which the landlord is permitted with make withdrawals. Generally, a correctly drafted rent deposit deed will entitle a landlord to make withdrawals from the rent deposit when a tenant is in breach of the lease covenants either during or at the expiry of the lease term.
The return of the keys raises a potential issue as to whether or not the landlord has accepted a surrender of the lease. Generally, where keys are returned a landlord must not do anything which is inconsistent with the lease continuing, otherwise a surrender could be implied.
If there are arrears of rent or other existing breaches of the lease, then a landlord may have grounds for forfeiture assuming that there is a forfeiture clause in the lease. Depending on the breach relied upon by the landlord as a ground for forfeiture, a specified form of notice of forfeiture may need to be served on the tenant before forfeiture is effected. The landlord is likely to utilise a rent deposit in making good any breaches of lease covenant and therefore the tenant may not get back any of the rent deposit.
There are a number of issues raised that require further consideration and I would recommend t that your friend obtain legal advice on their position.
Regards
Owen
By Owen Mckenna on February 21st, 2011
Nick
If you stop paying the rent the landlord will have remedies available to recover the outstanding rents. These remedies include the ability to sue you for the lease outstanding and future lease rents or, assuming that the lease contains the right for the landlord to re-enter, forfeiture. It will be a question for the landlord as to which remedy it chooses to pursue and in the current climate, unless the landlord has a new tenant ready to take occupation, they may not wish to forfeit the lease. Consequently, the landlord may choose to leave the lease in place and at some stage sue you for arrears of rent. If however the landlord does choose to forfeit, you as tenant would be responsible for all rents up to the date of forfeiture. Please note that if the lease was for example forfeited on 1 April and the rent was paid quarterly, the tenant would be responsible for the full March quarters rent.
Where a lease is granted to joint tenants I would usually expect to see a joint and several liability clause in the lease, meaning that if one cannot pay the other must.
Regards
Owen
By Nicos on February 23rd, 2011
Dear Owen Mckenna, thank you kindly for your response. May you be blessed with all your dreams and wishes. Regards Nick.
By Simon on April 9th, 2011
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?
By maria on July 20th, 2011
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 Owen Mckenna on July 22nd, 2011
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 on July 28th, 2011
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 on August 1st, 2011
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 Urvesh Bhagudia on August 29th, 2011
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 terrence gilligan on October 25th, 2011
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 terrence gilligan on October 25th, 2011
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 Owen Mckenna on October 28th, 2011
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 Patel on November 16th, 2011
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 Liz on April 15th, 2009
Hi,
Further to commments of last week answered by your collegue John. My partner has been in dispute with his landlord and has not paid rent (landlord’s case was struck out in the County court). Bailiff has changed locks and disputes that this is an illegal eviction quoting L’s common Law rights under Rent Act 1988 and also L’s right to his rent under Human Rights Act. Says as there is no signed lease, rules of forfeiture required by it do not exist.
Can you comment further.
Thanks
Liz