Arrears and dilapidations

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    Arrears and dilapidations

    I've got a tenant whose lease is up February 2018. Recently did a dilapidations survey with surveyor and turns out it is going to cost thousands to return the property into a good state of repair. Inside and out hasn't been touched at all since 12 years. He is also £10000 in rent arrears (part payment of rent) as he claimed he'd done repairs to the property but according to the lease he is liable for all these costs so now understands this.

    He has agreed to make payments of a couple of hundred a month back but what about the massive costs for the repairs? I'm guessing this portion can't be claimed using CRAR, only rent?

    To me this is too smaller amount and would take forever to pay back. Quite frankly, I'm not happy renewing the lease in Feb. I'd rather he is out and I can arrange renovations and start again with a tenants.

    Where do I stand as far as claiming this money?

    I know if I send in bailiffs they can recover their fees and rent due but guessing not the repair costs? If this is done then his business will cease to trade as it is catering based and he will have no equipment to make money.

    If this happens then how would I go about getting the remainder? Take him to court?

    I know that he owns his own home and possibly even one buy to let property so he does have assets. Thank you in advance.

    #2
    Hi,

    Did tenant reimburse you for the expense incurred in getting the survey done?

    Your next step might be to serve a section 146 for the repairs required. If this is ignored then you can proceed to forfeiting the lease, either by peaceful re-entry or via the courts. This would end the lease and tenant would have to apply for relief if they want to stay or will just leave.

    However, with that amount of arrears you could forfeit the lease immediately without the section 146 and see if that prompts T to clear the outstanding.

    Be careful to ensure you don't waive your right to forfeit.

    Also, check that your lease has a forfeiture clause.
    Answers given are simply my own opinion and should not be interpreted as legal advise. Always seek legal assistance if you have any doubts.

    Comment


      #3
      "tenant would have to apply for relief if they want to stay"

      Where a lease has less than 3 years to run, a tenant cannot obtain relief from forfeiture: Leasehold Repairs Act 1938

      Comment


        #4
        Leasehold Repairs act 1938 does not restrict tenants right to relief from forfeiture, it actually limits landlords ability to automatically forfeit lease on breach of repair grounds if the lease has more than 3 years to run of a term greater than 7 years.

        With 3 or more years to run, tenant can serve counter notice to landlord section 146 notice meaning that landlord would then need to obtain leave of count in order to forfeit lease.
        Answers given are simply my own opinion and should not be interpreted as legal advise. Always seek legal assistance if you have any doubts.

        Comment

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