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Thomas
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Category: UK Law
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Experience:  BA (Hons), PgDip, Practising Solicitor
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My commercial lease has been forfeited by the landlord 17.01.11

Customer Question

My commercial lease has been forfeited by the landlord 17.01.11 can they continue to claim rent until it should have expired in june 2013 or does forfeiture mean the lease and all obligations by myself and husband have ceased in relation to the lease?
Submitted: 6 years ago.
Category: UK Law
Expert:  Thomas replied 6 years ago.

Hi,

 

A landlord forfeits the lease when you have materially breached a term of the lease. This is a breach of contract and therefore the landlord has a cause of action to sue you for the loss he suffers as a result of the breach.

 

In all probability the landlord will sue you for the rent and his expenses/losses. Had you not breached the Lease then you would have paid the rent under it. They would probably get judegment on the amount of rent that you would have paid from the date of forfeiture up to the date at which the Court decides (on evidence) that the property could have been relet to a new tenant, together with any other attributable losses and expenses.

 

Sorry it could not be better news.


If this is useful please kindly click accept so that I may be rewarded for my time. You will be free to ask follow up questions.

 

Kind regards,


Tom

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Customer: replied 6 years ago.

The landlord upon forfeiture put in a new tenant with what i understand as a licence to the property not a lease so am i still responsible to pay lease till 2013

 

Expert:  Thomas replied 6 years ago.

Hi,

 

He will still probably sue you for rent but his mitigation by finding a new tenant will be taken in to account. We do not know if the new tenancy is paying the same rent as your or not so this presumably will be revealed when he issues against you.

 

If he has found a new tenant, it may be that he does not issue against you to avoid the administrative hassle. If he does issue against you then you will want to know so I presume he has a separate address for you that he could use for service.

 

Thank you for your kind accept.


Kind regards,


Tom

Customer: replied 6 years ago.

they have served us both with a statuatory demand listed on that it sates forfeiture of lease and demands rent for last quarter before forfeiture rent review arrears and rent for this curent quarter after forfeiture served.

if they want to sue for rent till end of lease would that be stated on this demand?

also other than this demand and notice from bailiff have received nothing stating lease terminated should i have received anything else from them?

Expert:  Thomas replied 6 years ago.

Hi,

 

The loss he is claiming should be listed on the statutory demand. If you don't pay following a statutory demand he can apply to have you made bankrupt on the basis of the statutory demand.

 

The landlord is not under an obligation to serve you with other documents relating to forfeiture unless the forfeiture clause in the lease actually requires it.

 

Kind regards,


Tom

Customer: replied 6 years ago.

sorry to appear a little stupid but are you saying that whatever is on the demand is all that he can sue for or in the near future can continue to demand money till lease would have naturally expired.

does it make any difference that he has a tenant in there now on this short term licence or not

Expert:  Thomas replied 6 years ago.

The statutory demand is for monies that are presently owing.


He could still issue against you for other loss he suffers (eg. the future rent) I'm afraid.

 

The short term tenant will help you to the extent that you can show he has mitigated his loss to an extent and so his damages should be reduced, but without details on how much the tenant is paying, what it has cost the landlord to get them in and how long they actually stay for it is difficult to estimate by how much your damages should be reduced.


Tom

Customer: replied 6 years ago.

the nature of the business meant that someone was temporaily apointed so that cost nothing to landlord and he is charging them higher rent than we paid as there was a special agreement that only applied to us. the person has paid for this quarter but it is still showing on my demand should this be right they still asking for rent after forfeiture when other tenant paid.

by them forfeiting lease i now do not have a business to sell can they do this

Expert:  Thomas replied 6 years ago.

Yes, he can do that. You would have had to have paid the quarter rent, if he had not found a replacement tenant as it is a legal obligation of your lease.

 

The mitigation of finding a new tenant can possibly assist you at court in determining the amount he gets judgment on but so far as the statutory demand is concerned he can list that amount.

 

Tom

Customer: replied 6 years ago.

the new tenant is still trading using all my fixtures and fittings removal of these would mean the business would have to close for refurbishment fit for purpose should i remove this or am i allowed to ask for rent

is there anything i can do or offer

 

Expert:  Thomas replied 6 years ago.

Hi,

 

If the fixtures and fittings are your then you have a right to claim them back from the landlord unless he has levied distress on them as a result of the money you owe him.

 

I would write (email, fax or post) and ask him to confirm a time at which you can attend to remove the items. It's better that you have documentary evidence of your exchanges from the landlord from this point on.

 

Tom

Customer: replied 6 years ago.
hi i am looking at applying for an iva will this help or will they still keep coming after me for rent
Expert:  Thomas replied 6 years ago.

Hi,

 

It's up to the landlord to see if he is willing to agree to an IVA, It is binding upon them once they have agreed to it so once an arrangement is made with respect to their debt the cannot seek more. If they claim the debt is actually further rents then you can dispute it.

 

It is up to the landlord to agree to the IVA, though they often do because it avoids the expense and administrative burden of petitioning you for bankruptcy.

 

 

 

Tom

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