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Thomas
Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7602
Experience:  BA (Hons), PgDip, Practising Solicitor
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I am coming to the end of a ten year commercial lease 1/1/12

Customer Question

I am coming to the end of a ten year commercial lease 1/1/12 in the current tennancy agreement the rent review is every five years last increase was 25% 2006.
private family landlord has proposed an increase of 20% to commence 1/1/12 will a review in a further five years of a new 10 year lease.

We can not afford such a large increase they seem to pull figure out of air,
who can i go to if we can not agree the rent increase rate ? i have made counter offer of 10% increase with a review in 3 years ?
or can they simply say 20% or no new lease ? even though i have been a good tennant for ten years.
Submitted: 6 years ago.
Category: UK Property Law
Expert:  Thomas replied 6 years ago.


Tom

 

 

Hi

Thanks for your question.

To enable me to answer your question could you please respond to the following:-

  • 1. Do you know if your lease is excluded from the Landlord and Tenant Act 1954 so that you do not have an automatic right of renewal at the end of the contractual term of the Lease (if it is excluded you would have had to have sworn a statutory declaration prior to completion and passed it to the landlord)

Kind regards.

Tom

Thomas and other UK Property Law Specialists are ready to help you
Customer: replied 6 years ago.
dont know
Expert:  Thomas replied 6 years ago.

Hi,

 

I must apologise- I intended my previous post to be an info request only (ie. one that would not allow you to click accept to).

 

I have unexpetadly been called in to a meeting for an hour, I will be able to provide you with an answer upon return.

 

In the meantime, could you confirm whether you instructed a solicitor to act on your behalf when you took the lease?


Kind regards,


Tom

Expert:  Thomas replied 6 years ago.

 

Hi,

 

Thanks for your question.

 

My meeting finished early, luckily.

The reason I ask whether you instructed a solicitor when you took the grant of the lease is because they will know if the lease is excluded from the Act mentioned in my above post. If you did you should call them to find out. If you did not then you should take a copy of your lease to ask a solicitor to check if it is excluded from the Act for a fixed fee. They will be able to tell in two minutes if it is.


If it is not excluded from the Act, then you have statutory right to apply for a renewal of the lease. The landlord can only object to a renewal on a few very limited grounds. If you cannot agree the terms of the renewal (ie. the rent) then you can make an application to court for the terms to be set and a chartered surveyor will be instructed to give an indication of fair rent to be charged.


If it is excluded from the Act then the landlord' solicitor is free to offer you a lease on whatever term he chooses. It is then for you to either accept, reject or negotiate but there is no obligation for them to alter their requirements if they are not so minded. If this is the case and you cannot agree terms then they will be free to serve notice on you to take possession of the Lease.

 

Please do not click accept to this post. If you do the site will charge you twice.

 

I will answer your follow up questions you may have.


Kind regards,


Tom

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