Shop Lease

[Adam858]

I've had a retail shop for the last 4 years, my original lease had a clause which said the landlord could take the place back at the end of the lease if he wants it.

He now says that I can stay and has had a new lease put together for me, but has left in this clause after saying he would remove it - saying that his solicitor now states this is standard practice.

My question - is this standard practice now?

Many thanks

Adam

[snipe12]

I am not sure if it is standard practise but it is in my lease also which I have just completed but mine does say he is required to give 6 months notice.

If you want it removing, push for it, not like shops are actually full at the moment as a new one seems to empty weekly near me or at least ask for 6 months notice.

[M-C Hoare]

I don't really understand, why wouldn't a landlord be entitled to have the property back at the end of a lease? They have to give notice, of course, to say that the tenancy will cease in accordance with the lease terms or if rolled over after the terms in accordance with the act.
Maybe I am not understanding the query properly.
Marie

[Adam858]

Just that I am trying to build up a good business at this location and don't want it to be snatched back at the end of the lease. (the landlord did say he may want it back on the last lease, but now he says he will not want it back). I was under the impression that a business premises lease could be renewed if the tenant wishes to, but I am not very experienced with shop leases so just wanted to check that this is normal practice. I’m probably worrying about nothing.

Also before the lease was prepared I asked him if this would be removed from the lease, he said yes. It has not been removed and he now says that his solicitor has advised that he leaves it in there and that this is normal practice.

This is what I wanted to know, is this normal practice? I don't really want to argue with something if it is the normal way to do things, but I would like my lease to be fair.

Cheers

Adam

[deniser]

A business tenant usually has rights to renew the lease at the end of the term (provided certain conditions are complied with such as continuing to trade at the premises etc) UNLESS the lease has been contracted out of the security of tenure provisions of the Landlord & Tenant Act 1954 - and the lease will specify if this is the case and you will have had notices served on your to this effect before the lease is signed. Basically this means that you give up your statutory rights to renew at the start of the lease.

However, even if you do have statutory rights to renew your lease, there are some cases in which the courts will refuse to allow the lease to be renewed eg.where the Landlord requires the premises for his own use or wishes to carry out redevelopment. It looks as though the the statement that the Landlord requires the lease back at the end of the term is connected to this exemption from the statutory right to renew.

If the lease is not contracted out then you will have rights to renew regardless of this statement; if your lease is contracted out then this statement reinforces the landlord's right not to renew if he needs it for his own purposes.

[M-C Hoare]

It sound like you should have it check over by a solicitor your end to make sure that it is all fine. The cost will be a tax deductable expense and well worth it in the long run.

Marie

[Adam858]

If its not that out of the ordinary and doesn't make that much difference anyway, I think it'll be fine.

The landlord has always been very straight with me, he did tell me at the beginning that he may want the place back and he now says that he wont so I don't have any reason not to believe him, although I would be more comfortable without this extra clause in the lease. He doesn't sound like he wants to remove the clause and I certanly don't want to move as we are doing really well at the minute, so it looks like I am stuck with it.

Thanks for your help

Adam