Tenant wants to use res. let property for Co. Reg. office

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    Tenant wants to use res. let property for Co. Reg. office

    Hello,

    I have a tenant who wants to register their own company against my address. This is a residential let, and the tenant is one of a small family with a baby, who runs an IT business from the property. Until now, I have stated that they cannot register the ltd company from the address.

    Can anyone offer advice on the issues around registering a ltd company at a landlord's address, so I can better understand the implications? These tenants may stay for a longer period if I grant them permission.

    Many thanks,
    Kind Regards,
    ___________________________
    AG landlord newbie

    #2
    I can't see that it should create any problems for you as L, provided that:
    a. you ensure that T and new co. will not use residential property for business purposes; and
    b. T and new co. BOTH agree with you (in writing) that, in consideration of you giving consent, they jointly and severally will indemnify you against all consequences, costs, and claims arising directly or indirectly.

    Also check with your own property insurer (and freehold reversioner [if you are leaseholder]/ mortgageee {lender} [if you mortgaged]) to verify that these do not object to what T proposes.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

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      #3
      1. I cannot think on what basis you can stop them

      2. There are no implications for you

      Comment


        #4
        I firmly believe that indemnification is crucial. If one of their customers gets injured by a falling tile off your roof - it is possible that this customer could bring a claim (which may be successful or not) against you as the responsible person. That is just an example of possibilities.
        ASSUME NOTHING - QUESTION EVERYTHING!

        Comment


          #5
          Thank you for your comments

          Thank you all for your comments, they are very useful and I am plesantly surprised with the speed of responses in this forum.

          Back to the issue - is there a standard indemnification contract / clause that I can add into the AST (perhaps as a countersigned addendum) to account for tenant ltd companies at my address?

          I'll make a point of checking the t's and c's with my insurer re: business activity at my property.

          FYI: The business carried out is that the tenant is a freelance IT graphic designer who may occasionally invite clients but would mostly visit external sites, so it doesn't sound problematic.

          Thanks once again.
          Kind Regards,
          ___________________________
          AG landlord newbie

          Comment


            #6
            I have been in this situation and there is absolutely nothing you can do to stop them! Even if they will not sign the indemnity you cannot stop a company being registered at an address you own. I think it is terrible - the person who wanted to do it on my property was "known to the police" and I wanted nothing to do with him. However both companies house and the Police said we could not stop it. It is wrong, but there it is..
            Unshackled by the chains of idle vanity, A modest manatee, that's me

            Comment


              #7
              Originally posted by islandgirl View Post
              I have been in this situation and there is absolutely nothing you can do to stop them! Even if they will not sign the indemnity you cannot stop a company being registered at an address you own. I think it is terrible - the person who wanted to do it on my property was "known to the police" and I wanted nothing to do with him. However both companies house and the Police said we could not stop it. It is wrong, but there it is..
              At least the OP's tenant would be earning an income, paying the rent...

              If your tenant was 'known to the police', for financial wrongdoing, how did he get through your referencing system?

              If he conducts any illegal activity on the premises, you have grounds for eviction.

              Lots of people work from home these days and there are advantages to themselves, their families, the community and the environment, if they do. As has been stated, as long as the premises don't undergo a change of use (with all the coming and going that might entail), why is it 'wrong'?
              'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

              Comment


                #8
                Believe it or not, he did not actually have any connection with my property (commercial property). He just happened to know/have some connection to the man who WAS in my property (not with me or my site)! Yet he could still set up a company here and there was nothing we could do.....MAD!
                Unshackled by the chains of idle vanity, A modest manatee, that's me

                Comment


                  #9
                  Originally posted by islandgirl View Post
                  Believe it or not, he did not actually have any connection with my property (commercial property). He just happened to know/have some connection to the man who WAS in my property (not with me or my site)! Yet he could still set up a company here and there was nothing we could do.....MAD!
                  Sounds very odd and, I agree, unfair that he should be allowed to do that - was it with the full knowledge and permission of the man you mention? If not, why couldn't he just chuck him out? If so, isn't there a clause in commercial contracts which limits the number of businesses which can operate from the premises?

                  However, this situation is different from OP's because it's a residential property and the tenant is the person proposing to run his business from home, not some hanger-on.
                  'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                  Comment


                    #10
                    Hi - no the man who was legitimately on site wanted nothing further to do with him (they had fallen out) and did not even know he was registering the company. We only found out cos mail was wrongly delivered. I would not think that it would matter one iota what the law said about max numbers of businesses (sadly). Companies house say their job is not to "police" the system. They have to take everything in good faith. I explained that there was no way all the legal docs could be kept here (as the person registering the company had no access) but it did not matter. I agree that the type of building is different BUT I think the same rules will apply - ie there is nothing you can do! Even the police tried to sort it out with companies house (they do not want this man "on their patch" either) but there was nothing which could be done. I would not believe it if it had not happened to me...
                    Unshackled by the chains of idle vanity, A modest manatee, that's me

                    Comment

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