The Tenant is a joint owner of the property do I need his permission to take action?

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    The Tenant is a joint owner of the property do I need his permission to take action?

    I own a commercial property jointly (equally) with another individual. The individual operates his business from the property, the business is a limited company and a lease is in place, the limited company is named as the tenant. The individual has run up arrears of several thousands pounds, all requests for him to pay the rent in full and pay the arrears have been ignored. I am considering going down the CRAR route, can i do this without his agreement?

    Thanks

    #2
    CRAR route, can i do this without his agreement?

    Are you the sole landlord of your tenant. Or is your tenant also a landlod to himself, as 50 % owner ?

    Is this right that the company leases the premises to one of it's own directors ?

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      #3
      You say tenant is named as limited company.

      Does lease say anything about who (eg human ) or what (eg company) pays the rent.

      Who or what is named as landlord in the lease? Sometimes landlord is not the owner.

      Is ownership by both of you as individuals or by, say, shares in a company?

      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        I do not think that you can go down the CRAR route as the tenant is joint owner of the property. To be absolutely certain though, I would pose your query direct to one of the CRAR agencies. They would be able to advise further on this.

        Comment


          #5
          Hi All

          Thanks for the replies

          Are you the sole landlord of your tenant. Or is your tenant also a landlord to himself, as 50 % owner ?
          No I am not the sole landlord, we own the property jointly. The property is leased to a limited company, the other owner is MD and 100% shareholder of the limited company.

          Is this right that the company leases the premises to one of it's own directors ?
          No, we lease the property to a limited company. The other owner is MD and 100% shareholder of the limited company.

          You say tenant is named as limited company
          Yes that is correct.

          Does lease say anything about who (eg human ) or what (eg company) pays the rent.
          The limited company is described as the tenant, the tenant is responsible for paying the rent.

          Who or what is named as landlord in the lease? Sometimes landlord is not the owner.
          The other owner and I are named as the landlords.

          Is ownership by both of you as individuals or by, say, shares in a company?
          As individuals






          Comment


            #6
            Acording to above, you have a problem.

            Correct me if i am wrong in the following.

            You do not have any control over the company that rents the property.
            The person renting the property is a 100% shareholder of the company.
            AND from what I understand, you and he own the building, and your "mate" ( the other owner ) rents the place through his own limited company..

            You are not a shareholder of that limited company, but are joint owners of the property.

            Sounds like you as an owner, must sue the company for none payment of rent.
            The other owner cannot object to you as an owner, legally enforcing a company that you are not party to, to pay the rent via court proceedings.

            Comment


              #7
              Hi Ram

              Yes your understanding is correct

              Comment


                #8
                According to above, you have a problem.
                This is not a legal answer, but rent must be paid.

                Suggest you ask a solicitor for the answer.
                But I would start proceedings to recover the rent ( after being advised legally )
                The lease / contract obliges the "Company to pay rent"
                The company is not paying rent.
                You as a concerned owner must mitigate your losses for the owners, irrespective who the other owners are.

                Failure of your partner to pay due rent, as required by law, doss not absolve your partner from paying rent just because he is a 50% owner.

                Normaly you need 100 %, or a majority to agree to sue, but you cannot go on for the next 20 years with no rent.

                You sue for loss of income, as well as no rent.

                You put two names on your court document.
                The "company" and your partners name. together.

                Seek profesional advice, as not many of us have come accross your situation, so a definate, guarenteed result cannot be advised with conviction. ( Only suggested, as above )

                Comment


                  #9
                  Thank you Ram

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