Commercial Tenant Subletting

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    Commercial Tenant Subletting

    I currently rent out a medium sized retail space to a well known food retail store. They have proceeded to sublet parts of said property to a fast food franchise and a postal/delivery company for more than double the amount which I receive annually in rent. Should I be entitled to part of the money they generate via subletting my property?

    Any help much appreciated.

    #2
    What does the lease say about sub-letting?

    Comment


      #3
      If the lease says the tank may sub-let, subject to the landlord's consent (in writing) not to be unreasonably withheld - or where the lease permits sub-letting with the landlord's consent per section 19, LTA1927, the landlord's consent cannot be unreasonably withheld. - then that does not mean the tenant can simply go ahead and sub-let without the landlord's consent.

      Whether the landlord is entitled to any extra rent where a tenant has sub-let depends upon the wording in the lease.

      If the lease prohibits sub-letting but you have granted consent regardless then you cannot complain afterwards if the sub=-rents exceed what you thought if you s=did not make it a condition of the consent that some extra rent would have to be payable.

      Comment


        #4
        Perhaps you should ask a solicitor to write to the sub-tenants pointing out that they are there illegally and give notice that they have 30 days to vacate. That will wake the tenant up that he has broken the terms of the tenancy. Although it may say that "not to be unreasonably withheld" as you will have to spend considerable sums of money in legal proceedings in getting your tenant to comply with his lease surely you would be entitled to say that the two sub-tenants which have been installed contrary to the lease are unacceptable. I would also assume that your tenants solicitor must have known about the lease as he will have done a sub-letting agreement.

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          #5
          Thanks for the replies. I now have a copy of the lease in my possession and will find the relevant area and share the wording on here over the weekend. I have never consented sub-letting to them.

          Comment


            #6
            Originally posted by Piffy View Post
            Perhaps you should ask a solicitor to write to the sub-tenants pointing out that they are there illegally and give notice that they have 30 days to vacate.
            If a tenant sublets in breach of covenant the subtenancy is not unlawful; it is only unauthorised. The subtenancy is legally binding as between the tenant and subtenant. A landlord cannot require a subtenant under an unauthorised subtenancy to vacate. What the landlord can do is forfeit the head tenancy and if the head tenancy falls the subtenancy falls with it. However, the right to forfeit is lost if the landlord does anything to confirm the tenancy such as demanding or accepting rent. The other remedy is to sue for breach of covenant, but there is no point doing that if the landlord cannot show a loss or that his interest is prejudiced.

            If the lease was completed recently and JC13 employed an agent to negotiate the lease terms, or an agent has recently negotiated a rent review, I think he is entitled to ask the agent how it is that the rent for subletting part exceeds by such an amount the rent for the whole.

            If a review is coming up I would have thought a substantial increase in rent is on the cards.

            If a renewal is coming up the food retailer will only be entitled to a new lease of the part it occupies.

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