Notice to Quit (Commercial Property)

[adria]

Hi All, Seasons Greetings.

In April my tenants have 6 months left before I put the (commercial) property on sale. They knew from the outset that I would be selling it in due course and have been contracted out of the LTA 1954 right from the beginning of their tenancy (and also when an extension was granted to them).

I've recently lost faith in my legal bod, he never gives me a straight answer, (maybe he honestly doesn’t know and farms my work out to someone else?) Anyway I would appreciate some info please so that I know what to expect.

Should the Notice to Quit take the form of a nice letter reminding them to vacate on the day after the lease ends or should it be a formal notice (like a S25 or whichever is applicable in this case).

My presumption is that since they are opted out, a formal notice isn’t necessary but I really would appreciate advice prior to conversing with the legal bod again. (Forewarned is Forearmed, my Dad used to say).

Thanks and Best Wishes to all for 2013.

[Lawcruncher]

If the tenancy is contracted out a section 25 notice is not necessary and indeed to be avoided as it allows the argument that the tenancy was not contracted out; the argument probably would not be successful, but you still do not want to allow it.

In fact nothing is needed at all since as a matter of law the tenancy ends when the fixed term expires. You must though at all costs avoid demanding or accepting any rent for any period after the fixed term expires. However, at some stage well before the tenancy ends it would be as well to write to the tenant reminding him that you require him to vacate on or before the last day of the tenancy.

[adria]

Many thanks Lawcruncher. I feel more comfortable now.

(Legal bod suggested a S25 notice. Time he went pehaps?)

All the best for 2013.

[rentreviewspecialist]

While I agree with Lawcruncher that no notice is required to end a contracted-out tenancy, the op should note that on expiry of the contractual term the tenant might choose to not vacate. But if the tenant does not vacate then he would have no legal right to remain in occupation, so he would have no defence in law should he resist going.

If you intend to write a reminder about the need to vacate then it would be as well to mention that you assume the tenant is aware it would have no legal right to remain in occupation after expiry. Also, the date for vacating is the expiry of the contractual term, not the day after the lease ends.

Also, the last day of the tenancy would be midnight on that day: the tenant is not obliged to vacate any earlier!

[adria]

Thanks also to you too rentreviewspecialist for the extra info.

All the best for 2013

[MrJohnnyB]

Many thanks Lawcruncher. I feel more comfortable now.

(Legal bod suggested a S25 notice. Time he went pehaps?)

All the best for 2013.

Section 25 notice is a Section 25 of L&T Act and is the procedure for non-contracted out tenancies service of such notice could have a horrendous effect.

[Lawcruncher]

I agree that section 25 notices are totally inapplicable to contracted out tenancies. Serving one where not not needed should not have an adverse effect, but should definitely be avoided in case a judge has an off day. Apart from that, you do not want to allow anyone to argue that by serving one you admit that the tenancy is not contracted out. It is important in legal matters not to say or do more than you need to.

[simlock]

Hi, can anybody tell me where i can download this form please thanks Notice to Quit Commercial Property

[flyingfreehold]

Such a thing as such doesn't exist if you mean a s25 notice then you can buy a download from various on line legal suppliers

[Another Fine Mess]

I would get a Chartered Surveyor who runs a business selling and managing Commercial Properties and get it valued.
I had a tenant in a commercial shop whose lease was running out. I asked a Commercial Estate Agent for a valuation and he found me a buyer.
Once a Solicitor who specialises in serving notice to quit on commercial properties has served the correct notice you should be able th have an agent put up a For Sale sign
PS Have you had a Schedule of Dilapidations done,?

[rentreviewspecialist]

Another Fine Mess's suggestion that a notice is required is incorrect.

Where a lease is outside LTA54 no notice is required because the tenant has no legal right to remain inn occupation after expiry of the contractual term. The tenant should be reminded that he must leave and the landlord requires him to.

Provided the landlord does not demand or accept rent after expiry and does not consent to the tenant remaining in occupation, the tenant would be a trespasser if the tenant has not vacated. As a trespasser, the landlord could claim damages (known as mesne profits).

if the tenant doesn't leave of his own accord then a solicitor should be instructed to get him out.

Depending on what the existing lease says, about re-letting, etc you may be entitled to put up a to let or for sale board or such like before the end of the lease.

[Lawcruncher]

As a trespasser, the landlord could claim damages (known as mesne profits).

No claim should be made until after the tenant vacates.