Rented business premises - reant areas, notice from Agency

paddyrg

gettingready wrote: »

Need to see what is the legal stand here really.

For a commercial lease, the legal position is exactly what the contract both sides agreed to is, consumer domestic protection does not apply. Surprised the CAB are even getting involved, as I doubt there's a lot they can do

paulwf

A two year lease after spending tens of thousands of pounds (presumably) is madness. Not having an accountant or I presume any form of business advisor or even a book keeper to produce a monthly p&l doesn't help either.

Along with the comments about the debt potentially getting out of hand it looks like the owner needs to take a step back and get a proper structure in place. Some guidance is required before things get really out of hand. The worry is without accurate accounting you don't realise how things really are until you're in a bigger mess and it gets harder and harder to do anything about it.

CKhalvashi

Paul is speaking a lot of sense here!

It may be worth speaking with the owner to see if you can reach an amicable agreement; we're 14 months into a 15 year lease at the moment, and having spent in excess of £5m actually getting the unit how we want it, we have managed to get inserted into the lease that we can walk out tomorrow, stop paying the rent, and leave them with the £500k bill of removing what we've installed (there are 40 computers, and in excess of a mile of cabling in there).

It lets the landlord know that you've done work to the property, and also gives a nice angle to re-negotiate the rent every few years, to keep it low. This should be especially the case, if you've raised the value of the unit by more than the arrears.

CK

Savvy_Sue

CKhalvashi wrote: »

Paul is speaking a lot of sense here!

It may be worth speaking with the owner to see if you can reach an amicable agreement; we're 14 months into a 15 year lease at the moment, and having spent in excess of £5m actually getting the unit how we want it, we have managed to get inserted into the lease that we can walk out tomorrow, stop paying the rent, and leave them with the £500k bill of removing what we've installed (there are 40 computers, and in excess of a mile of cabling in there).

It lets the landlord know that you've done work to the property, and also gives a nice angle to re-negotiate the rent every few years, to keep it low. This should be especially the case, if you've raised the value of the unit by more than the arrears.

The difficulty in this case is that this person is renting a residential property rather than a set of offices / retail outlet / workshop. It might be a 'buyers' market' for those, less so for residential. Plus, we don't know what the terms of the lease / rental agreement are, but ...

paddyrg wrote: »

For a commercial lease, the legal position is exactly what the contract both sides agreed to is, consumer domestic protection does not apply.

this is absolutely crucial. IF legal advice had been taken beforehand, the tenant should have understood what the implications of what they were signing, and that could have been the time to negotiate.

No doubt the OP's friend thought they couldn't afford it.

gettingready

Thanks everyone. The agency has delivered a 2 month notice - to be out at the end of June.

They claim there is 6k arrears, rent is 1300 per month.

Asked to dig out all receipts and add everything up. No, no accountant/solicitor was involved at any point. Despite me saying one should have been involved.

CAB appointment on Tuesday morning.

I am too far away (5 hours drive and I do not drive/can not take time of) to go and see for myself what is going on/what can be done.

It is not a friend, is a family member, my daughter actually.

She took on this place (with her b/f) in a proper state and turned it into a lovely, boutique B&B but it took time and money plus when she finished the work it was dead season (she only stared taking guests in December).

In January b/f left as all was "too much pressure" for him and she stayed there by herself - holding 3 part time jobs and looking after guests trying to make ends meet.

Place is lovely, there is NOTHING available to let where she is, no commercial property of this type - not within 10 miles radius (I am always checking) and all existing B&B (over 100 of them) are always full in season.

She got fantastic reviews from people that have already stayed with her, bookings really picked up now but....notice was given.

Absolutely heartbreaking - she has put not just money but all her heart into this place.

Yes, naive to put so much money (borrowed) into a rented place but she is young and her calculations were wrong. B/F leaving did not help.

She has no contact with the landlord. All goes via an agency. I do not think owner realizes how much work (and the quality of it) she has put into this place, he has not been there since she moved in.

Value of possible sale as well as possible rental has gone up a lot after all the work but...

She is totally depressed about losing this place and worries herself sick.

She has no money for a solicitor or kind of proper legal advice hence the CAB appointment - perhaps they can offer some advice. Clutching at straws here I know but...

CKhalvashi

It's still worth speaking to the Agent, and getting the agent to negotiate with the LL.

It may also be worth inviting the agent to the property, as whilst we're nothing to do with this industry (we're actually recording studios/record label, on an industrial estate that's highly in demand), if the agent has seen the property, you'll be in a much much better position to sort any issues.

I do appreciate it's highly frustrating for you, and for your DD, however there is a way around this. I'm currently liaising with a site manager (it's nearly 5am here) to ensure that things go smoothly, as whilst the company is financially secure now, we can't afford to lose this contract, so I really do know how you and they feel!

CK

sooty&sweep

Hi
What situations does the lease agreement give to allow the lease to be broken ?

gettingready

Agent was in the property several times and is very impressed with the work done as they have obviously seen it before and after the work done. IT is the landlord that has not seen the place after all work was done.

I really hope there is a way out of this situation and my daughter can stay there as really the business picked up since like beginning of April, quite a few bookings and everyone staying very happy.

Would be such a pity to lose it now

gettingready

I have not seen the lease agreement (or the notice) so can not say - asked my daughter to photocopy or scan and send to me.

notanewuser

Are you not able to find her the money from somewhere?

Agent is no doubt rubbing his hands at the thought of the higher rent/sales price commission. Can she contact the landlord directly and negotiate to stay? (Paying off the arrears is key to this.)