Business eviction

Mark T Jones said:

Unfortunately for you there is an old saying which is almost literal in this case 'you don't build a house on rented land'.

I assume that the time for discussion has passed? If so, you need to focus on getting value for the equipment you have installed - first stop, negotiation with the incoming car wash.

Next stop, how to remove them without breaching dilapidations/ damage clauses in your lease

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Thank you Mark for your reply.

Yes, but the landlord ask me to do all this (canopy, road signs foul sewer etc).

I have one more week.

One of the clauses is that I must leave the parking area empty just as I took it.
The new car wash is a franchise and they already made the agrement with someone else and they said if I want I can contact this company maybe they have another car wash available for franchise.

Thank you all for your advices.
The situation was as follows...
In 2013, I rented 10 parking spaces with the intention of opening a car wash. The agreement at that time was made with the store manager, and the license granted had no specific clauses.
In 2016, I received a new license valid until September 2027, but this time it included several clauses, one of which stated that the contract could be terminated with 30 days' notice.
Over the years, I have invested significantly in the space, as it was necessary to conduct my business properly.

What is most disheartening is that after 10 years of hard work building this car wash, the property owner terminated my contract in order to open another car wash in my place.
I repeatedly requested more time, as both my husband and I worked there, and we have children to support, as well as employees who also have families depending on their jobs. However, these pleas were ignored.
It would have been easier to accept had the space been required for other reasons, but this decision feels entirely lacking in morality.
After consulting with a lawyer, we were advised that the terms of the license did not work in our favor, and we were left with no choice but to vacate the premises even if we didn't do anything wrong. Unfortunately, this is what we had to do...to close our business.

Thank you again for your attention.

fisicx said:

Why did you agree to these clauses? Surely your solicitor pointed them out when they reviewed the contract.

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Thank you for your reply.
Yes, the lawyer also informed us that we wouldn’t have protection with this license. However, the landlord made it clear if we want to take it like that or not take it at all. He said if we don't accept he will go to the court, assuring us that if we accepted and reached an agreement, there wouldn’t be any problems. Unfortunately, issues did arise in the end.

Looking back, perhaps it would have been better if we had pursued that discussion to the court. But now, it’s too late.

Mark T Jones said:

Unfortunately you have learned an important business lesson the hard way (less hard than some, if that's any consolation).

There is no such thing as a 'friendly arrangement' in business - more accurately, it's only friendly for as long as either party wants it to be.

It's unlikely you would have won in court - you voluntarily entered into an agreement that wasn't balanced.

Moving forward, if you start again, the most important message here is to take appropriate legal advice before the event, not after it.

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Yes Mark, you are right, this was a good business lesson.

eteb3 said:

Good advice as always from Mark T Jones.

Out of interest was the solicitor a commercial property specialist? Do you know if they considered whether the agreement was really a lease (on the basis that you could exclude others from those 10 parking spaces, including the landlord)?

It's relatively unimportant what the agreement calls itself: it can still be a lease even if it calls itself a licence.

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Yes, the solicitor is a commercial property specialist. I had a License to occupy and this is not protected by the Landlor and Tenant Act 1954.

Below you can see the termination clause. I would like to mention that I have not broken any of the license clauses; the only reason is that the landlord made an agreement with another person. Personally I believe this person is close to the landlord, and it will be easier for them to operate the same business since they no longer need council permission or trade effluent consent, as these have already been obtained by us for that place.

4. TERMINATION

4.1 The Licensor shall be entitled to terminate the licence to occupy prior to the expiry of the Licence Period in the following circumstances and at the following times:

4.1.1 At any time on notice to the Licensee following a breach of any of the obligations of the Licensee contained in this licence or following the termination of the Previous Licence; or

4.1.2 On not less than 30 days' notice given by the Licensor to the Licensee at any time; or

On not less than 30 days' notice given by the Licensor to the Licensee in the event that the Superior Landlord requires the Licensor to terminate this licence to occupy; or

4.1.3 On not less than 30 days’ notice given by the Licensor to the Licensee in the event that the Superior Landlord requires the Licensor to terminate this licence to occupy; or

4.1.4 On not less than 30 days' notice given by the Licensor to the Licensee in the event that the Licensor wishes to assign its leasehold interest and the proposed assignee requires the termination of this Licence

4.2 The Licensee shall be entitled to terminate the licence to occupy prior to the expiry of the Licence Period on not less than 30 days' notice to the Licensor at any time on or after the first anniversary of the date of this Licence.

4.3 Termination is without prejudice to the rights of either party in connection with any antecedent breach of any obligation subsisting under this agreement.

4.4 Following the termination of the Licence neither the Licensee nor his employees shall enter the Car Park without the express consent in writing of the Licensor

4.5 Following the termination of the Licence neither the Licensee nor his employees shall enter the Car Park without the express consent in writing of the Licensor