Let shop out with no agreement

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  • Let shop out with no agreement

    My grandfather has been letting a shop out to tenants for approx 12 years. He is an old fashioned type and he didn't get a tenancy agreement signed. He has never had any problems with them until now. Now he wants to sell the property but the tenants are refusing to leave. The rent is remarkably low for the type of property.
    1st Question - Can he put the rent up, if so how?
    2nd Question - How can he get them out?
    A sale has been agreed, however the potential buyer does not want sitting tenants.
    Thanks for your help.

  • #2
    Try putting the question into Commercial Property Questions forum for a more thorough answer but I'm sure as soon as Tom the Editor sees this he can give you lots of advice, but here's mine:
    1. First of all the tenant has protection under the Landlord & Tenant Act 1954 and will have rights of occupancy so eviciting him will be extremely difficult.
    2. Specific performance will be used to determine the core terms of the lease but as far as being able to use grounds for repossession is very limited.
    3. You are entitled to a market rent so you can increase it but I can't tell you exactly the process without a tenancy agreement.
    4. Your prospective purchaser will unfortunately be stuck with the tenants for the foreseeable future so your sale might just fall through.
    That's the best I can do and I'm sorry the news is not better.
    The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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    • #3
      Thanks very much,
      any other pointers would be appreciated.

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