Unwritten Commercial Lease

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Unwritten Commercial Lease

    We want to buy a commercial unit which has am unwritten lease and where the landlord has accepted rent of circa 2/3 market value for over 3 years.

    The tenant is likely to have security of tenure under the 54 Act and will require compensation in any successful eviction.

    But how as a landlord would we know when or how we could negotiate a written lease at market rate? What is the deemed length of an unwritten business tenancy? Thanks

    #2
    There is no "deemed length" for an unwritten tenancy; however it can never be for a period exceeding three years. An unwritten comercial tenancy will usually be periodic and the periods equal to the frequency with which rent is paid. Full details should be supplied to your conveyancer.

    If the tenancy is unwritten it has to mean the tenant has statutory security of tenure. The formal procedure for getting the rent increased is to serve a section 25 notice and start negotiating a new fixed term tenancy. Your conveyancer should be able to fill you in with the detail. You can though simply agree with the tenant an increase in rent without granting a new tenancy.

    Comment

    Latest Activity

    Collapse

    Working...
    X