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Our commercial 5yr lease is up with our existing landlord.

 
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  • Answered by:Joshua
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Customer Question

Our commercial 5yr lease is up with our existing landlord. There lease is also expiring. The new landlord had asked us if we wanted to stay on and we agreed based on the Heads of Terms. They sent these a month ago, but we had not got round to looking at them until this week. They sent an email on 13th June suggesting we needed to respond very soon and we contacted them on 19th June. 20th June they phoned and said that they could not write a new lease contract before the expiry of the existing lease 24th June and have informed us that we must be out by then or the locks will be changed. We have our entire business running out the office, with live servers for clients around the country and cannot move in 1.5 days. We have tried to agree to stay, even for a temporary amount of time to move the servers and they have said it is not there problem. Our business will collapse of they change the locks by the weekend. Can we do anything about it?

 

Optional Information:
System of Law: England-and-Wales

Already Tried:
Reasoning with the Landlord, agreeing to stay at their terms. They have said that it will take too long to write a new lease agreement, even a temporary one so we cannot be in here past our existing lease.

Submitted: 296 days and 22 hours ago.
Category: UK Law
Value: £50
Status: CLOSED
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Expert:  Joshua replied 296 days and 22 hours ago.

Thanks for your question. Please RATE my answer when you are satisfied by clicking on 3 STARS *** or ABOVE.

Please kindly only RATE my answer when you are satisfied. If you rate my answer as less than 3 stars this is recorded as negative feedback. If you decide to click less than 3 stars please stop and reply to me first by clicking on REPLY or CONTINUE CONVERSATION. It is important to me that you are satisfied with the service you receive from me.

Is your lease excluded from part 2 of the Landlord and Tenant Act please?

Customer replied 296 days and 22 hours ago.

Where do I find this information?

Customer replied 296 days and 22 hours ago.

I have a one page document that lists certain information?

Attachment: 2012-06-21_101113_20120621111921.pdf

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Expert:  Joshua replied 296 days and 22 hours ago.

It should be contained in your lease. It will state whether it is excluded or not from Part 2 of the Landlord and Tenant Act

Customer replied 296 days and 22 hours ago.

I have attached the docuement relating to that statement

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Expert:  Joshua replied 296 days and 22 hours ago.

Thanks. It does appear that your lease is a contracted out lease. From what you say the landlord is in principle willing for you to continue occupation but it is a timing issue re the new lease?

Customer replied 296 days and 22 hours ago.

No they are not prepared to to let us stay and not interested in writing a new contract as it will take us past the current lease on 23rd. All I want is some extension or loop hole to stop them changing the locks. Our entire business would collapse if they change the locks.

Accepted Answer

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Expert:  Joshua replied 296 days and 21 hours ago.

Thanks. The position is that if your lease is excluded then the lease ends on the last day of the lease period and you must vacate. However if the landlords only reason for wanting you out is because they are worried that the new lease will not be prepared by then and that as a consequence you will obtain security of tenure their concerns are ill founded.

The courts have decided that where a contracted out lease ends and the parties are actively negotiating for a new "contracted out" lease, your continuing occupation as the tenants will not create security of tenure. However, if negotiations are not active, for example because the landlord has not pressed for signature of the new lease, the court can conclude that your continuing occupation is as a periodic tenant, protected by the 1954 Act.

The landlord could ask you to sign a tenancy at will to cover the intervening period though it is not strictly necessary and adds little. If the landlord discusses the matter with their solicitors they will very likely advise them of the above alternatives to your moving out just because a new lease has not been completed.

However if the landlord simply does not wish to renew unfortunately because your lease is contracted out you have no right to continue occupy beyond the last day of the lease as you have no security of tenure. This will be a problem if the landlord simply does not wish to renew however on the basis that they do not wish to do so simply because they are concerned of the possible consequences - that you will obtain security of tenure, their concerns are to a great extent ill founded as above.

Is there anything else I can help you with or clarify above? If you have no further questions for now I should be very grateful if you would kindly remember to RATE my answer with 3 STARS *** or above as appropriate. Your feedback is important to me. If you intend to click less than 3 STARS please reply back to me so I can help with any further questions of clarifications first.

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Expert TypeLawyer
Category: UK Law
Pos. Feedback: 99.0 %
Accepts: 6242
Answered: 6/21/2012

Experience: LL.B (Hons), Prof Dip Law & Practice. 9 years experience in private practice in England

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