Notice to quit server by LL and penalty? Small shop in Scotland

mahatma_2

Hallo
I know it is not right place but I just do not know what to do.
I have small shop in Glasgow and just received NOTICE TO QUIT from the LL.
The reason for this is a fact that in lease rent should be paid quarterly and we recently changed it to monthly and we are one month behind because of very bad market.
I understand the LL and I am willing to leave and pay all rent till the day I leave but LL decided to serve us a Notice today and gives us 7 days until 13th of August to clear and leave the shop. The shop was in very bad condition and constantly flooded. It was unoccupied for 7 years when we took it in Jun 2009 for short rent period until 27th Nov 2010. Our invoiced rent payment period is ending 27th August 2010 and the invoice was served in April 2010. We paid 1/3 already and the rest was outstanding. So there is now 3 months and 3 weeks of the lease to normal ending of it. I responded to LL that I of course understand their position and I am willing to vacant the shop and pay outstanding balance but I will appreciate if we could stay until the end of the invoice so 27th of August 2010 paying before of course.
I Jut the answer that the agree to that but also they will issue 6 weeks rent “penalty will be charged due to your vacating the unit before the Lease expiry date for early” - there was no deposit and in lease there is not a word about any penalties. In lease there is 14 days cancelation period in case of bridge of a contract.
My questions are as follow:
Can they g server 7 days NOTICE TO QUIT
Can they charge us 6 weeks penalty?

I will appreciate any advice

mahatma_2

26 May 2009





We, LL having our Registered Office at ..., (hereafter referred to as the licensor) hereby offer to grant you (Tenant , and trading as NAME) hereby referred to as the Licensee) a licence to occupy ALL and WHOLE the single shop unit and store room over ground and basement floors at address Glasgow together with our heritable fittings and fixtures therein and the whole rights, common, mutual or otherwise pertaining thereto (hereinafter referred to as “the premises”) and that on the following terms and conditions: -

1. The date of entry shall be with effect from the 28th May 2009.

2. The Licence shall endure for a period of Eighteen Months commencing from the date of entry up to and including the 27th November 2010 and thereafter it will continue on a month to month basis subject to either party terminating the agreement by sending to the other party 3 months written notice. on or after 27th November 2010.

3. The Licensee will receive one months rent free from the date of entry. The Licensee Fee commencement date will be 28th May 2009.

4. The licence fee or rent payable by the Licensee in respect of the premises shall be £30,000.00, (Thirty Thousand Pounds Sterling) per annum all sums net of VAT and payable by four equal payments quarterly in advance on Standard Scottish Quarter Dates and the first payment being due on the date of entry and quarterly thereafter throughout the term of the Licence. For the avoidance of doubt this fee will be exclusive of repairs and buildings insurances.

5. The Licensee will pay to the Licensor a sum equivalent to 6 months Licensee Fee in advance prior to the date of entry.

6. The Licensee’s use of the premises will be as Class 1 Retail use and for no other purposes without the Licemsors prior written consent which consent shall not be unreasonably withheld.

7. Interest at the rate of 4% above Bank of Scotland Base lending rate from time to time prevailing shall become payable on any licence fee payments due in terms hereof and that from the due date until paid.

8. The premises will be accepted and taken by the Licensee as seen and shall be deemed to be satisfactory for the intended use.

9. No alterations shall be carried out to the premises without the Licensors prior written approval, which approval shall not be unreasonably withheld.

10. You shall not be entitled to assign your interest in this licence agreement or share the occupancy of the premises with any other party without our approval, which approval shall not be unreasonably withheld.

11. You will be solely responsible for maintaining the premises internally to at least as good a standard as at the date of entry and on expiry of the licence agreement you will vacate the premises, leaving same in such condition as is consistent with your obligations hereunder, and to our satisfaction, making appropriate arrangements for the safe return of the keys. If you have not complied with the terms of this clause by the date of expiry of this licence agreement, and subject always to Condition 5 hereof, then our clients shall be entitled either to require you to carry out any necessary maintenance or other works as are necessary to put the premises into such a condition as is consistent with your obligations hereunder or at our clients option to carry out such works themselves and recover the whole cost thereof from you, In either of such events the licence fee shall continue to be payable until the premises have been put into such condition as is consistent with your obligations hereunder and if appropriate the whole cost thereof has been met by you.


1. Licence Fee and other outgoings:
a. The Licensee must pay throughout the Licence Period the Licence Fee with effect from the Licence Fee Commencement Date on the due dates for payment.
b. The Licensee must pay within 14 days of written demand in addition to the Licence Fee
i. all rates, taxes, duties, levies, charges, assessments, impositions and outgoings whatsoever imposed upon or payable in respect of the Premises or upon the owner or the occupier;
ii. a proper proportion attributable to the Premises throughout the period of the Licence (as the same shall be certified by the Licensors' Surveyor, whose certificate shall be conclusive and binding on the Licensee save in the case of manifest error) of all such rates and Common Factors charges and others now or hereafter taxed, assessed, charged or imposed in common with other premises or upon the owners or the occupiers;
iii. the costs incurred by the Licensors in connection with the buildings insurance of the Premises;
iv. the costs of all water rates imposed in respect of the Premises;
v. the costs incurred by the Licensors in securing the performance of or compliance with any of the Licensee’s obligations under this License to Occupy.

2. The Licensee shall be responsible for the cost of heating and lighting the premises and all other utility costs, which costs shall be apportioned from the date of entry.

3. The Licensor shall be responsible for keeping the premises constantly insured for the full reinstatement value thereof during the period of this licence agreement. The Licensee agrees to repay on demand to the Licensor the buildings insurance premium incurred, the Licensor being obliged to forward the appropriate policy details and receipt in respect of said payment. You will be responsible for plate glass and contents insurance. The buildings insurance will be based on the buildings as let and this will exclude tenants fit out and all contents which should be insured separately by the Licensee.

4. You will permit the licensors and/or their managing agent’s all reasonable access into the premises on providing the Licensee with 48 hours prior notice.

5. Subject always to the provisions of sections 4, 5 and 6 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1985 we shall be entitled to terminate the licence agreement provided we provide 14 days written notice if you are in breach of any terms thereof, which without prejudice to the foregoing generality shall include failure to pay the licence fee on the due date or failure to make any other payment due hereunder..

6. The missives of which this offer forms part will form the basis of the licence agreement and no formal deed in pursuance thereof shall be drawn up. It is however accepted by the parties that in the event of there being any dispute as to the rights and obligations of the parties that in the event of there being any dispute as to the rights and obligations of the parties in relation thereof the same shall be determined by an arbiter mutually chosen by the parties or failing agreement as to such notice appointed by the chairman for the time being of the Royal Institution of Chartered Surveyors in Scotland, whose decision shall be final and binding.

7. The parties hereby consent to the registration hereof for preservation and Execution, the cost of which shall be paid by the Licensee.








Yours sincerely


Signed for and on behalf of



………………………………………………………………………………………………………………………………..



Authorised Signatory……………………………………………………………………………………………………


I accept this offer


Signed



………………………………………………………………….PRINT NAME…………………………………………………………………………Date……………………………….

DVardysShadow

OK, it seems to say nothing about a penalty. So you should write to them and state that a penalty does not appear due and ask them to identify the basis on which they are making this charge. Let them do the running around.

mahatma_2

06th August 2010
Notice Of Quit
In respect of outstanding rent and other sums due under the terms of your licence to occupy the premises referred to above, NAME OF THE LL, having their registered office at ADDRESS, as landlord require you to remove yourself, your servants, your goods and your gear by 12 noon 13th August 2010, from all and whole the said premises and arrange to deliver the keys to this office on the same day, failing which we are instructed to place your contents into storage and secure the premises.
Your sincerely

mahatma_2

Hallo
Sorry to write to you in such unpleasant circumstances. My employees
just received a mail from your office with final notice. As I
explained in my previous correspondence our business in Glasgow
suffered a large fall because ******* store opposite.
I totally understand your position. I just wonder if we could agree
change of date of vacating the store.
The invoice from you dated 26th April 2010 is for period
28/05/2010-27/08/2010 and we did paid 1/3 of the invoice already and
the outstanding balance for that period is £5,875.00.
My humble request is if we can change the date of vacating the
property to the end of the invoice period which is 27/08/2010. W will
pay you the half of the outstanding balance today and other half by
the end of the next week and that will give me chance to organise the
moving out of the premises.
Please answer ASAP

mahatma_2

Thanks for getting back to me so quickly.

I've spoken to the Landlords and they are happy to continue with the date of vacation as the 27th of August, providing the balance of the quarter is paid in full as per your proposal below.

In addition to this a penalty will be charged due to your vacating the unit before the Lease expiry date. This would be a penalty of 6 weeks rent rather than the additional quarters rent to the 27th of November. The amount for the six weeks would be £3461.54.

I would be grateful if you could conform by return, and I will advise the Landlord.

Many thanks,

mahatma_2

Thank you for quick answer.
The company is in the situation that we unfortunately can not agree to
any penalty. I check the lease and it not mentioning anything on the
subject of penalties in any circumstances. We can agree to the terms
we offered and leave 27th of August but we can not agree to any
termination penalties.
You did issued us the Notice to quite and it is not us who cancelled
the contract.

Emmzi

I would remove the loaction from your prior post, I now know *exactly* which business you are given that and how long you have been open, and if I were your landlord I would *not* be happy about you discussing this on a public forum

mahatma_2

Based on all that info the question is if they can terminate in 7 days and if they can charge penalty

Annisele

I'm afraid I can't help, but you might be better posting over on the LandlordZone forums if you haven't already done so; there's a commercial property forum over there.

Most of the discussions on this forum are about residential leases, and the law for commercial leases is quite different. Somebody here may well be able to help, but I'd try LandlordZone as well in case they can't.