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What rights does a Trustee (landlord) have towards use of a

building once a commercial full...
What rights does a Trustee (landlord) have towards use of a building once a commercial full repairing lease is in place? The property is leased to a Ltd. Company, limited by guarantee to operate a not for profit charitable concern.
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Answered in 11 minutes by:
7/18/2011
Thomas
Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7,634
Experience: BA (Hons), PgDip, Practising Solicitor
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Hi

Thanks for your question.

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

  • 1. What is the permitted use for the property authorised in the lease?

Kind regards.

Tom

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Customer reply replied 6 years ago
Hi Thomas
The business being run from the building is a working theatre, run entirely by volunteers for the local community.
The theatre building is held in trust for the community.

Hi,

 

Okay, but you say that a commercial lease has been granted to the charitable limited company. The lease will state what the company is permitted to use the property for in a specific clause in the "Tenant's Covenants" part of the lease.

 

What does this say?

 

Kind regards,

 

Tom

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Customer reply replied 6 years ago
Hi Thomas

The Use Allowed statement on the lease says 'a theatre with ancilliary facilities' or any other use to which the landlords consent (and the landlord is not entitled to withold that consent unreasonably).


I don't know if this is relavent but clause 10 of the Landlord's obligations and forfeiture rights refers to quiet enjoyment.
'the landlord is to allow the tenant to possess and use the property without lawful interference from the landlord, anyone who derives title from the landlord or any trustee for the landlord.

Thank you

Hi,

 

Thanks for your reply.

 

The tenant is permitted to use the property for the purpose referred to in the first clause you have selected. If they use the clause for another purpose and they do not apply to the landlord for consent then this will be a breach of use which could be enforced by the landlord.

 

If though the company use the property only as a theatre, with all the required functions that requires, then the landlord will not be able to prevent them doing this because they have a legal leasehold estate in the land which is fully enforceable and governed entirely by the lease.

 

If there are specific functions which the property is being used for then please specifically let me know so I can provide further guidance.

 

If this has been useful please kindly click accept so that I may be rewarded for my time. If you do not click accept your money stays with the site and I do not receive any credit for the time I have taken to answer your question.

 

I will answer your follow up questions you may have.


Kind regards,


Tom

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Customer reply replied 6 years ago
Hello Thomas
Thank you for advise so far.

The trustees are using the theatre for meetings and are showing interested parties who want to view a working theatre around without notice, or seeking agreement or permission from the tenant.

My basic question, for a meeting this evening, is;

Are these activities by the landlords permissable under the lease in place?

Regards

You refer to "trustees", can you restrict yourself to using either "landlord" or "tenant" please.

 

Are the "trustees" the landlord or tenany please?

 

Kind regads,


Tom

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Customer reply replied 6 years ago
The Trustees are the landlords and the company is the tenant.
At present the trustees are causing chaos with the running of the business and the company is trying to establish if it has the right inder the lease to tell them to seek permissions.

I appreciate your difficulties but wonder if there is a 'get lost' answer to this problem.

Regards

Hi,

 

If the tenant has a lease over the whole of the building to use the property as a theatre for the length of the fixed term then the landlord can only enter in accordance with the lease.


This will usually be for the purpose of checking that the tenant is complying with the tenant's covenants (ie. repair etc) and can only be used reasonably. THe clause may also permit entry for the landlord within the final quarter of the term for the purpose of viewings to potential tenants or buyers.

 

If the tenant and the landlord are effectively different legal entities/persons then the tenant has a right of occupation and use of the property in preference to the landlord - that is the point, the landlord has given up their usual rights in respect of the property by granting the lease in consideration for the rent they receive.

 

The tenants should put this in writing to the landlord if they consider that this is a breach of contract and possibly follow it up with a solicitors letter before action.

 

I trust this clarifies, if so please click accept.

 

Kind regards,

 

Tom

Thomas
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