No business lease

jesmin45

My son in law runs a car repair garage in a workshop which is owned by Mr A. Mr A leases one half of the building to Mr B who runs a car valeting business. My son in law (who occupies the second half of the building) had a lease for the first year of him running his business. But Mr A has not renewed his lease. My son in law pays his rent each month (which includes council tax) to Mr B and obtains a receipt . My son in law has been there since August 2010. What are the implications of him not having a lease, and as he pays the money to Mr B, does this mean Mr B is subletting? Mr A knows that my son is there and pays to Mr B. Hope this makes sense!

bengalknights

Isnt Mr A the owner of the building if he leases out the building to MR B.

If your son leases the second bit of building he should then go direct to Mr A and get a lease.

Murtle

Can I check

Mr A owns the workshop or leases it from someone else?
Mr B leases half the workshop from Mr A

Your son in law leases half of Mr B's half or the other half of the overall workshop that Mr A has?

lincroft1710

It's not Council Tax it is Business or Non Domestic Rates. If your SIL has a defined, delineated area, or separate "room"/building, he should have his own rating assessment and pay the rates himself direct to the council.

jesmin45

Hi yes Mr A owns the building and he leases half of the building to Mr B, my SIL leases the other half but pays the rent which includes the rates, but he pays this to Mr B.
Mr A is aware of the arrangement.
But now my SIL has no lease. I have told him to go and see Mr A and get a proper lease from him and arrange to pay it direct to Mr A. I think Mr B leases the whole building from Mr A but because he does not need all the space and it used to be a garage repair business previously so it has the ramps etc, and Mr B does not need that area, he then sublets that half to my SIL. So he will be paying rent for the whole building. But my SIL needs a lease otherwise Mr A could turn him out at anytime.

Annisele

I think your SIL needs to find out exactly what the situation is.

You say "Mr A owns the building and he leases half of the building to Mr B", but you also say "I think Mr B leases the whole building from Mr A" - which is it?

Worst case, your SIL is giving Mr B a nice gift each month which Mr B has no right whatsoever to accept. Chances are that's not the case - especially as you say Mr A knows about the arrangement - but I don't think you can be sure unless you know what the actual situation is.

paulwf

OP I suggest you get some proper legal advice, it is important for the business you know where you stand. You seem a bit confused about the current arrangement - or the arrangement itself is confusing! - and spending 10 minutes talking face to face with a solicitor will clarify the situation than a lot of forum posts going back and forth.