Commercial landlord issues

[ukbiz]

I've had a few issues with my commercial landlord recently and I was hoping that someone could give me some advice, or point me in the right direction.

Since covid, my shop was suffering financially and I decided that I wanted to sell it. In the last few months I was late for a couple of rent payments but this was always communicated to the landlord and they were understanding of the situation. I decided that I wanted to sell the business and transfer the lease to someone else. I emailed the landlord asking if this would be a problem and they started ignoring me and taking longer than usual to respond. Some of the responses didn't address the question at hand. Eventually they agreed and told me to give the new person their details once I'd managed to sell the business, and that they would arrange a new lease with them. I listed the business for sale and managed to find someone to buy it around a month later. I completed the deal with the buyer and then emailed the landlord to let them know that I had found someone, and that they would be contacting them soon to arrange the new lease. They ignored multiple emails and they replied almost 2 weeks later saying that they won't be renewing my lease or giving a new lease to the buyer, no reason was given. This is my first shop and I'm not familiar with the legalities around commercial properties but it didn't feel like the situation was handled in a professional, or legal way.

My next step was planning to seek legal advice, but I realised that the landlord did not provide a UK address on the lease, only a foreign address as they live abroad. I sent them many emails asking for a UK address as I was considering some form of legal action but they ignored all of my requests, at least 4 times. They also provided a phone number on the lease but when calling it does not seem to go through. I only have an email address to contact them on which makes it very easy for them to ignore me and they take ages to respond. They used to respond very quickly until I wanted to sell the business.

I came very worn out by the situation so decided that I wanted to leave as soon as possible if I was able to arrange it with them. I wasn't happy with the situation at all but didn't feel as though I had any other option. As soon as I stopped asking for a UK addresss and instead asked about leaving, they started responding very quickly again. We came to an agreement via email that I would remove my belongings and vacate the property by the 14th of July and that they would inspect the property and return my deposit by the end of the month. I vacated the property as agreed and waited until the end of the month. I didn't hear anything that month but did receive an email on the 1st of August asking about a missing padlock for the shutters. I reply letting them know that the padlock was my own one so I took it with me when I left. It's clear to me that they are just trying to delay or avoid returning my deposit. I know it has only been 5 days late but they are now ignoring me and the original agreement has been broken.

Does anyone have any advice in this situation given that they live abroad and I have no other means of contacting them? Was it against the law that they did not provide me with a UK address? They also agreed that I could sell the business, which I did, but then changed their mind about the lease after I'd sold the business, is there legality issue there? I'm disappointed with the conduct of the landlord so would like to take it further if there is a way to do so, but first and foremost I would want my deposit returned.


Any advice would be very highly appreciated, thank you.

 

[MBE2017]

You wished to end your lease early, your landlord agreed. Just as your plans have changed, so might theirs. They might have decided that dealing with tenants was not for them, and to sell the property. They have every right to do as they wish.

I’m sure communications should have been better, but surely the time to get UK addresses and phone numbers was before you signed the lease, did your solicitor not mention this omission, or did you miss it on your own?

 

[ukbiz]

You wished to end your lease early, your landlord agreed. Just as your plans have changed, so might theirs. They might have decided that dealing with tenants was not for them, and to sell the property. They have every right to do as they wish.

I’m sure communications should have been better, but surely the time to get UK addresses and phone numbers was before you signed the lease, did your solicitor not mention this omission, or did you miss it on your own?

There was no solicitor, the lease was a 1 page word document written my the landlord himself. I've never had a commercial property before so wasn't aware of any specific requirements. So the fact there was no UK address on the lease means that the landlord is allowed to refuse giving me one when I ask?

 

[ecommerce84]

I would take what you’ve signed to a local solicitor who specialises in commercial property and see what they make of it.

It may not be worth the paper it’s written on. Or it may be.

It’s unlikely though that you could force the landlord to sign someone else up to a lease, even if they’ve agreed previously.

 

[ukbiz]

I would take what you’ve signed to a local solicitor who specialises in commercial property and see what they make of it.

It may not be worth the paper it’s written on. Or it may be.

It’s unlikely though that you could force the landlord to sign someone else up to a lease, even if they’ve agreed previously.

Thanks for the response, I will try doing that, or if there are any commercial solicitors on these forums that see this post I would be happy to use their services.

 

[ukbiz]

The main thing I want is the return of my deposit, so I guess what I really need to know is how to take a landlord to court without a UK address if that's even possible?

 

[fisicx]

The main thing I want is the return of my deposit, so I guess what I really need to know is how to take a landlord to court without a UK address if that's even possible?

You need to be able to serve the court papers to UK address. But even if you did manage to get through the legal system and win you then still need to force them to pay. I’d write the money off and next time get a solicitor before you sign a lease.

 

[MOIC]

Selling the ‘business’ to a 3rd person does not give them the right to a new lease (irrespective of what the landlord said), their solicitor should have advised them of this, IF they used a solicitor.

Without knowing the exact terms of the one page lease contract, it’s difficult for anyone to advise your position. Generally there are always 2 sides to a story which may affect any action you may decide to take.

What is the value of the deposit you expect to be returned?

Wait a month, then if no positive contact, decide if it’s worth pursuing, after taking legal advice.

 

[IanSuth]

I take it they have a local representative as someone must have looked at the property to see the padlock was missing - have you tried liaising with whoever that is ?

 

[ukbiz]

Selling the ‘business’ to a 3rd person does not give them the right to a new lease (irrespective of what the landlord said), their solicitor should have advised them of this, IF they used a solicitor.

Without knowing the exact terms of the one page lease contract, it’s difficult for anyone to advise your position. Generally there are always 2 sides to a story which may affect any action you may decide to take.

What is the value of the deposit you expect to be returned?

Wait a month, then if no positive contact, decide if it’s worth pursuing, after taking legal advice.

Will do, thanks

 

[ukbiz]

I take it they have a local representative as someone must have looked at the property to see the padlock was missing - have you tried liaising with whoever that is ?

Yes they must do but I have no idea who it is unfortunately.

 

[Gyumri]

As has been asked already what is the value of the deposit? Solicitors are the highest paid earners in the UK at £350-£500 per hour so before going down that path and splashing out it has be worth it otherwise you could end up chasing rainbows.

 

[dylanmarlais]

You may be able to sue and win on the evidence of the agreement as evidenced by the emails and other conduct. However, how will you enforce the judgment? Where abroad are they based? When in the EU, a judgment of a UK court was enforceable within the EU. Not any more. It may be a lot of work and hassle for no return. On the other hand, a formal letter before claim from a solicitor may well spook them a bit and get them to pay up. But, as has been said above, the solicitor will charge you his or her hourly rate for meeting with you, reading the papers etc, advising, drafting and sending the letter. I reckon about £500 to £1000 plus vat. And the landlord may just ignore the letter. Ask the solicitor for a quote for sending the letter before claim. You could send the letter before claim yourself, of course, but it may well have no effect.

 

[dylanmarlais]

As has been asked already what is the value of the deposit? Solicitors are the highest paid earners in the UK at £350-£500 per hour so before going down that path and splashing out it has be worth it otherwise you could end up chasing rainbows.

Yes indeed. Ask for a quote. Some will give a fixed price to send a letter of claim. Some lawyers charge lower, in the region of £200 an hour.

 

[Michael Loveridge]

God, where to begin. This sounds like an exam paper for a solicitor's landlord and tenant exam.

It’s impossible to deal with all these points, but the first thing to say is that if the lease doesn’t contain any prohibition against assignment you are legally free to assign the lease to anybody you want to. Consequently, you didn’t need the landlord's permission to do it.

You say you “completed the deal with the buyer“ – were there any lawyers involved? I suspect not, or you wouldn’t be in such an unholy mess.

Normally in a deal like this, there would be a formal assignment (transfer) of the lease to the person buying the business. However, it sounds as though this was not done. It’s not clear from your post whether or not the buyer is actually now in occupation or not - please clarify this.

Although you could and should have assigned the lease to the buyer it seems that you didn’t, and that you ended up agreeing to a surrender of the lease. That would obviously leave the buyer high and dry unless they have come to an arrangement with the landlord for a new lease, and could leave you open to a claim for breach of contract if you agreed to assign the lease as part of the deal.

Whether or not you can get the deposit back depends on the terms on which the deposit was handed over initially. This should be (but probably isn’t) set out in the lease. If it was simply an informal deposit to cover rent etc then assuming the rent was paid up to date you probably do you have a legal case for its return.

If you do sue him and get a judgment it should be easy to enforce as he owns the property, and you can enforce against that.

It’s a brilliant illustration of how saving a few hundred quid to avoid paying lawyers' fees can end up costing a hell of a lot more.

 

[ukbiz]

Just to give an update to the situation, I threatened them with a county court claim at their last known address and it prompted them to return my deposit. I only received £6000 out of the £6500 I paid but I wont take it any further as I feel lucky to have received anything at all.

 

[MBE2017]

Just to give an update to the situation, I threatened them with a county court claim at their last known address and it prompted them to return my deposit. I only received £6000 out of the £6500 I paid but I wont take it any further as I feel lucky to have received anything at all.

Congrats on a lucky escape.

 

[MOIC]

Well done!

Did the person you sold the business to, get a new lease?