NNOTICE FROM LANDLORD INCREASING RENT by 57%

[Doodle-Noodle]

Can't believe the letter we got this morning - I'm so furious I could scream, (actually, I will ) ..... nope, still not feeling any better.

We had an Option to Break on our lease in September 2009, at the same time we were subject to a rent review. The rent review never happened, our rent stayed the same and we therefore didn't exercise our option to break.

Then this morning, we get a letter telling us that our rent is to increase by 57% ...... and it's backdated to the date of the Rent Review! We have to sign and send back the letter of acceptance (which clearly we are NOT going to do) and they want the extra money (around £25k) within 14 days ...... I've checked under the mattress and we don't have it. Not even close.

I'm assuming that if the landlord can legally retrospectively action the rent review, we can retrospectively exercise our option to break ..... they won't be getting the money as we simply don't have it. It's a totally unreasonable rise anyway.

I've done nothing about it today as it's such a laughably outrageous request that it's almost pointless addressing it, but clearly I shall have to contact the solicitor first thing Monday morning .... can't believe this has happened just as we are getting to the point we're starting to see a return on our initial investment which was, quite frankly, considerable.

How greedy can you get eh?

 

[Toby1968]

There should have been a mention of maximum increase in rent (usually "in line with inflation" or sim'. Get back onto your solicitor who handled the lease. Also I don't know but there is always a "rent review date" so I can't see how they can back date it if they missed that date - just the same as if you missed the break by a day it would be your tough luck and you would be stuck with the lease.

Solicitor is required.

Good luck - but it seems your landlord is also struggling!!

 

[LicensedToTrade]

Pretty much what Toby has said, speak to the original soliticor if possible. I'd say that this wasn't planned in advance by your landlord, these seem like the actions of someone who has a very desparate and sudden need for significant amounts of money. You can rest assured that he will be looking all around him for ways to source this money, your ancient break option must have seemed like a possible opportunity to him.

 

[kulture]

Get out your lease and see what it says regarding rent reviews. It is ALL down to what it says. If your solicitor did his job properly it would have some clause in it regarding what to do when you do not agree an increase. If it does not, then you are stuffed. As everyone says, it is down to things like this that mean it is vital to have a lease checked by a solicitor before you sign.

Hopefully it will all be down to negotiation and you will get it sorted. Until then keep paying the OLD rent.

 

[Connexions]

Dont be surprised if they are doing it deliberatly so that they can move in one of the big retailers.

 

[Consistency]

I really do not know much about this but I sympathise very much and wish you the best of luck.

 

[chalkie99]

I got caught out by this many years ago.

I took the rent review wording to mean that it would only increase by the rate of inflation so reckoned it would not be a great problem. In the event it meant that they could increase it according to what they could get from a new tenant. The area had a few improvements, my premises were wanted by a large company who were prepared to pay a much higher rent and I had no option but to relocate.

 

[kulture]

If your lease does allow appeal, it will probably have an option to use an independent surveyor to suggest a value. Or you may find it beneficial to appoint one to advise you. What they do is look at the going rent in nearby properties and compare it to yours. Now an agent working for you will pick independents and potentially lower rent neighbours. An agent working for the landlord will pick any national chain property if there is one near you.
We had this when we were across the road from a pizza express in a secondary street. Their head office had not bothered to negotiate and so were paying twice the going rate for the street. Still cheap for their operation which is more prime locations. So the landlord tried to suggest that their agreed rate was the new standard for the street. Armed with local knowledge our surveyor knew of two properties where the landlord was a private individual who had never bothered to increase the rent for the last 10 years. So their rate was significantly less than our current rate, let alone the proposed increase. In the end we agreed a modest increase and did not agree to it being backdated.

Depending on your location, and the occupancy rate of units in you town, you may be in a good negotiating position. The property Market is poor, and many landlords would rather keep a good tenant than have an empty property.

 

[Doodle-Noodle]

Thanks for the replies ..... will get my head out of the sand and start the ball rolling on sorting this out. Got as far as digging out a copy of our lease but haven't yet sat and looked at it; have also had a quick check online and see that we could have a shop in Basingstoke town centre for the same rent (actually even lower!) than the landlord reckons he'll get from our current shop which is really in a residential area.

The increase we're being demanded is not reasonable or fair, and we simply cannot pay it. End of.

I'm so p***ed off about it ..... we spent a fortune getting the premises into a useable state when we took it on (it had no windows, door, floor, ceilng, electricity supply) and we are still only just over half way through clearing the loan we took out to finance the improvements; we knew we were taking a risk of course ...... anyone starting a new business knows they are taking a risk. We also knew before we completed that we were dealing with a difficult landlord as the negotiations were neither fair nor reasonable from the start but we ploughed ahead anyway ..... blinded by our own determination to fulfill an ambition I suppose. The market was different then though and empty units were few and far between.
There are no empty units in Tadley at the moment which of course will go in the landlord's favour; it's highly unlikely that any large chain is queuing up to get the shop we occupy .... but I guess you never can tell!
I am going to have to get my customer service head on in the next hour or so, so need to push all this to the back of my mind until 5.30pm tonight ......

 

[Consistency]

Thanks for the replies ..... will get my head out of the sand and start the ball rolling on sorting this out. Got as far as digging out a copy of our lease but haven't yet sat and looked at it; have also had a quick check online and see that we could have a shop in Basingstoke town centre for the same rent (actually even lower!) than the landlord reckons he'll get from our current shop which is really in a residential area.

The increase we're being demanded is not reasonable or fair, and we simply cannot pay it. End of.

I'm so p***ed off about it ..... we spent a fortune getting the premises into a useable state when we took it on (it had no windows, door, floor, ceilng, electricity supply) and we are still only just over half way through clearing the loan we took out to finance the improvements; we knew we were taking a risk of course ...... anyone starting a new business knows they are taking a risk. We also knew before we completed that we were dealing with a difficult landlord as the negotiations were neither fair nor reasonable from the start but we ploughed ahead anyway ..... blinded by our own determination to fulfill an ambition I suppose. The market was different then though and empty units were few and far between.
There are no empty units in Tadley at the moment which of course will go in the landlord's favour; it's highly unlikely that any large chain is queuing up to get the shop we occupy .... but I guess you never can tell!
I am going to have to get my customer service head on in the next hour or so, so need to push all this to the back of my mind until 5.30pm tonight ......

What an absolute kick in the teeth. All that money on improvements and he could end up benefiting from them. I am angry for you my friend and again, I can only wish you the best of luck. Landlords really think they own the world sometimes!

 

[deniser]

OK, this is the legal position:

1. your break option cannot usually be backdated
2. your rent review can usually happen at any time after the rent review date
3. to safeguard against the position you are in your solicitor should have ensured that:
(i) the break option comes some time after the rent review date
(ii) you have the right to trigger the rent review process as well as the landlord. You can then have certainty as to the amount of rent payable in good time to decide whether or not to exercise the review. If you know your break option needs to be exercised you can trigger the review by serving the notice, negotiating the amount - in this day and age often a zero increase - and then decide whether or not to exercise the break.
4. rent reviews are always backdated to the date of the review set out in the lease
5. interest is usually payable on the backdated rent at the rate negotiated by your solicitor (usually at base rate)
6. the rent is supposed to be the market rent at the date of review ie. September 2009, not now. So if a lot of shops were empty then you use this to prove the market rent then - it is not the situation now that counts.

You really need to read the rent review provisions in your lease and the notice from the landlord carefully.

Rent is usually reviewed to market rent with a number of assumptions and disregards. Without reading your clauses I can't advise you but assuming that your lease is in standard form:

1. The rent review process is usually one of negotiation, not a fixed amount specified by your landlord. The landlord will always pick a high figure and it is then for you to negotiate it down by producing evidence of comparable premises and rents. It is very unusual for it to end up anything like the first figure. You need to observe the time limits in the notices.

Large companies will appoint a rent review surveyor to negotiate for them. Basically it involves collecting evidence from other shops nearby to see what they pay.

2. the rent is usually based on market rent and whether or not you are successful in your trading has no impact on the rent review. The fact that you have no empty shops nearby could be an indicator of good demand which can push the rent up (but it is the position as at Sep 09 that counts). You will need to find out what other shops were paying then.

I thought you had only been in the premises for 2 years? Why do you have a review already? How long is your lease? Or was it an assignment of an existing lease?

 

[Doodle-Noodle]

It's a nightmare ..... our landlord is the co-op who in turn leases the premises from someone else ..... we didn't get a new lease, just the remainder of their lease (11 years) assigned to us so we knew right from the off that a rent review was in place for September 2009 but since we also had an option to break at the same we thought we could get out if the rent rose to a higher level than we were able to pay.

I can't find a copy of the Headlease at the moment, our documentation all refers to various clauses inthe headlease which isn't helpful either ...... I think I may be stuffed

 

I got caught out by this many years ago.

I took the rent review wording to mean that it would only increase by the rate of inflation so reckoned it would not be a great problem. In the event it meant that they could increase it according to what they could get from a new tenant. The area had a few improvements, my premises were wanted by a large company who were prepared to pay a much higher rent and I had no option but to relocate.

But did you have to pay the rent review backdated.?

Seems totally unreasonable to me who would agree to paying an unknown rent.?

Earl

 

[deniser]

It's a nightmare ..... our landlord is the co-op who in turn leases the premises from someone else ..... we didn't get a new lease, just the remainder of their lease (11 years) assigned to us so we knew right from the off that a rent review was in place for September 2009 but since we also had an option to break at the same we thought we could get out if the rent rose to a higher level than we were able to pay.

I can't find a copy of the Headlease at the moment, our documentation all refers to various clauses inthe headlease which isn't helpful either ...... I think I may be stuffed

Don't panic, remember it's the rent as at Sep 09, there may not be an increase at all.

Get onto your solicitor and get a copy of the headlease so you can read the rent review clauses.

Was the Co-op ever trading from the premises or is their lease just held as an investment?

 

[deniser]

Seems totally unreasonable to me who would agree to paying an unknown rent.?

Earl

Exactly - that's why it's important to have a solictor restructure the lease for you at the outset so you can get out if the reviewed rent is not to your liking.

 

[Doodle-Noodle]

OK - have found the lease it says:
" Rent Reviews
.1 If the Head Rent is increased on review the Landlord shall serve notice on the Tenant of the revised amount of the Head Rent and the Rent reserved by this Underlease shall from the date the increased Head Rent became or becomes payable under the Head Lease be increased to the like amount
.2 From and including the date of the Landlord's notice of the increase (or if later from and including the date from which the increase in rent is due to take effect under the Head Lease) the Tenant shall pay to the Landlord rent at the increased rate and in the Landlord's notice is served after the date from the increase of the Head Rent took effect the Tenant shall within 14 days of the Landlord's notice pay such sum as represents the difference between the rent previously payable and Rent at the increased rate for the period prior to the Landlord's notice during which the incresed rent is payable together with interest on such difference at a rate equivalent to 2% above base rate...." etc .....
Definitely stuffed then .... only option is to get independent surveryprs etc to value the premises anad see if we can negotiate a more reasonable rent (which can't go down according to the lease) but suspect that the landlord and headlandlords have probably been arguing over this for a while and it's got them nowhere.

Under the clause marked Right to Determine we are required to give the landlord 6 months notice of our intention to exercise the break clause ..... so stuffed there too.

Fact is we don't have, can't get the money ..... I have a shop full of stock worth alot of money which I need to get rid of ..loan to repay, in contract with CCTV company (5 years) ...... loads of stuff to think about if we're going to have to get out of this mess

 

[kulture]

Talk to a solicitor. And definately talk to the original solicitor and ask why he left such a huge potential liability on your lease.

 

[Highland Park]

I have nothing to add except sympathy - lots of it

 

[deniser]

OK - have found the lease it says:
" Rent Reviews
.1 If the Head Rent is increased on review the Landlord shall serve notice on the Tenant of the revised amount of the Head Rent and the Rent reserved by this Underlease shall from the date the increased Head Rent became or becomes payable under the Head Lease be increased to the like amount
.2 From and including the date of the Landlord's notice of the increase (or if later from and including the date from which the increase in rent is due to take effect under the Head Lease) the Tenant shall pay to the Landlord rent at the increased rate and in the Landlord's notice is served after the date from the increase of the Head Rent took effect the Tenant shall within 14 days of the Landlord's notice pay such sum as represents the difference between the rent previously payable and Rent at the increased rate for the period prior to the Landlord's notice during which the incresed rent is payable together with interest on such difference at a rate equivalent to 2% above base rate...." etc .....
Definitely stuffed then .... only option is to get independent surveryprs etc to value the premises anad see if we can negotiate a more reasonable rent (which can't go down according to the lease) but suspect that the landlord and headlandlords have probably been arguing over this for a while and it's got them nowhere.

Under the clause marked Right to Determine we are required to give the landlord 6 months notice of our intention to exercise the break clause ..... so stuffed there too.

Fact is we don't have, can't get the money ..... I have a shop full of stock worth alot of money which I need to get rid of ..loan to repay, in contract with CCTV company (5 years) ...... loads of stuff to think about if we're going to have to get out of this mess

Well in that case, ignore my previous post which relates to a standard lease only.

Yes it does seem you are stuffed I am afraid but I would imagine that you may have a good case for negligence on the part of your solicitor if this was not explained to you properly. Wasn't the rent review going to come up almost immediately after your took the assignment? Was this clause not scrutinised and discussed?

There are clauses missing (the fault of your predecessor's solicitor but which your solicitor should have pointed out) such as your right to join in the rent review process by making your own representations, you could also have had a side agreement in your contract whereby the assignor agrees to pay the difference between the two rents (did you agree anything like this?)

No wonder the previous tenant got out, he probably knew what was coming..... this is awful, I have lots of sympathy too but don't understand why you weren't aware of such an onerous provision when you signed the lease. Did you not read it?

 

[HFE Signs]

57% seems crazy to me, I would have to agree, check lease and get a solicitor on the job. A rate review generally has a degree of negotiation involved, they must have some reason to justify 57%, I'd arrange a face to face meeting first to see how they can possible justify that type of increase. Best of luck with this…

 

[deniser]

57% seems crazy to me, I would have to agree, check lease and get a solicitor on the job. A rate review generally has a degree of negotiation involved, they must have some reason to justify 57%, I’d arrange a face to face meeting first to see how they can possible justify that type of increase. Best of luck with this…

If the last review took place in 2004, 5 yearly being a standard rent review pattern, then there may be a perfectly good reason why the rent has gone up that much.

The problem here is that the inbetween person, the Co-op, doesn't have any incentive to negotiate hard because the rent will just be passed to the undertenant on the long lease with 11 years left to run.

 

[kulture]

You are in a difficult position. You need to talk to a solicitor to see if there is any wriggle room here. You also need to explore other avenues.

Regarding the increase, is it just the back rent that is crippling, or is the new rate also crippling. Although 57% on paper sounds terrible, it may simply be bringing your rent up to the average for the area.

If the new rent is too high and you cannot afford it and cannot negotiate your way out of it, then you have to close. Do you have a personal guarantee on the rent? If not then I would consider talking to an insolvency practitioner regarding selling off the assets to a new company and letting the new company find a new shop. I would not ordinarily suggest getting out of a debt in this way, but you have been unfairly screwed.

It is a long shot, but can you get hold of the owner of the head lease and claim poverty, perhaps try and get a better deal direct. It is unlikely to succeed but sometimes companies have no problems in screwing other big companies (like the co-op) but take a different view to small independents.

Also consider talking to the press and your local MP. Again a long shot but it might work and at worst it will provide advertising for your closing down sale, should it come to that.

 

[Doodle-Noodle]

Oh good grief ....... it is just awful isn't it, seems totally hopeless at the moment, don't know which way to turn to be honest ......
onviusly going to see solicitor on Monday (hopefully anyway, if I can get an appointment!) and will take it from there. Have also found a copy of the original lease from the head landlord to our landlord which states that "On each rent review date the rent is to increase to the market rent if that is higher than the rent applying before that date ....."
I'de be very surprised if the proposed rent increase bears any resemblance to rents being currently paid by other units (the shop next door to us pays £150 per week, the charity shop next door to them £100 per week) but I shall do some digging and find out.

 

[kulture]

"On each rent review date the rent is to increase to the market rent if that is higher than the rent applying before that date ....."
I'de be very surprised if the proposed rent increase bears any resemblance to rents being currently paid by other units (the shop next door to us pays £150 per week, the charity shop next door to them £100 per week) but I shall do some digging and find out.

What do you think "market rent" is, if not the rent the shops next door are paying! Convert the rent your neighbours are paying to a rate per square foot, and then multiply that by your floor space and that will give a guide to the "market rent" that your shop should be paying. Work this out before seeing the solicitor as it may help.

 

[deniser]

Have also found a copy of the original lease from the head landlord to our landlord which states that "On each rent review date the rent is to increase to the market rent if that is higher than the rent applying before that date ....."
I'de be very surprised if the proposed rent increase bears any resemblance to rents being currently paid by other units (the shop next door to us pays £150 per week, the charity shop next door to them £100 per week) but I shall do some digging and find out.

The problem is that this is not what is in your lease unfortunately..... your lease just requires you to pay whatever is agreed by your landlord and headlandlord without reference to you - negligent on your solicitor's part IMO if this was not pointed out.

Has the headlease rent actually been concluded and has evidence of that been provided?

 

[Doodle-Noodle]

The problem is that this is not what is in your lease unfortunately..... your lease just requires you to pay whatever is agreed by your landlord and headlandlord without reference to you - negligent on your solicitor's part IMO if this was not pointed out.

Has the headlease rent actually been concluded and has evidence of that been provided?

The letter we have received from our landlord states "....we have now concluded exhaustive negotiations with the Landlord which has resulted in an increase to £**,*** per annum. We therefore wish to agree a revised rent between you as subtenant and ourselves in the same sum. Please confirm agreement to this Rent with effect from September 2009 by signing a copy of this letter where indicated ....."
So it looks like our landlord has accepted it although we have not

 

[tyro1979]

Was very saddened by your post, you've been most helpful on these forums.

I doubt your Landlord will have made this ridiculous demand if he hadn't checked with his Solicitor first. Get your contract fully explained by the Solicitorwho negotiated it, you're either facing a bill or a nutt job.

Worst comes to the worst, you can argue that the contract was so grossly weighed in the favour of your Landlord, that had you been aware of this you never would have signed. This may be suffice to render the contract null and void, if not.

Your Solicitor has been negligent not to have checked for caps on the amount your rent could increase. Legally you may find you owed your Landlord the 25k, thus would have a seperate legal case to pursue against your Solicitor for not highlighting the lack of aforementioned cap on your lease, arguing that you are now aware it is seen as a standard inclusion of businesses lease. You would be looking to reclaim the 25k plus court fees back from the Solicitor.

You need to avoid further Solicitor and Court fees at all cost. Unfortunately, I firmly believe our Justice system sucks; there's no justice for the little man and Doodles of Tadley's is as small as we come. Have the Solicitor who negotiated your lease draft a letter (free of charge it's the lease they can do) advising you legally take responsiblity for the content of the contract as your aforementioned argument was not enough to render it null and void. Therefore, you take responsibility for paying your debt. Furthermore, explain, whilst not declared officially bankrupt you have been rendered financially insolvent by the recent, unforeseen bill to the tune of 25k. Advise you are obviously no longer in a position to maintain and pay your rent so are vacating the premise (surely there's somewhere better, there's loads of empty premises in my area. Invite local artists in to decorate it for you, call the walls gigantic business cards). Request a payment plan for their final invoice advising you forecast you will be able to pay £0.10 per week until the debt is paid. Worst comes to the worst, they take you to Court (Get idiot Solicitor to represent you, surely they'll pick their game up) and you are perhaps told to pay the money. If so, what will happen if you don't? You'd need be written off as a bad debt surely, end of.

I hope my advice has something worth reading within it. I sincerely wish you all the best.

 

[tree568]

Goodness, what a cautionary tale to anyone thinking of renting a shop (as we were, but as of this moment no longer are) instead of buying the freehold on one outright. What a horrible experience. Good luck with this.

Have you checked with the Office of Fair Trading about this? There was a case about a council increasing rent by an unreasonable amount recently. Sorry,I don't remember the exact details but (we have a commercial lease with our council) I did cut and paste this at the time: "The Unfair Terms in Consumer Contract Regulations 1999 makes it automatically unfair for a landlord to impose an arbitrary increase in rent. Guidance by the OFT on unfair terms in tenancy agreements indicates that unless increases are linked to such external factors as the RPI or evaluated by an objective person independent of the landlord they may be deemed to be unfair."

 

[Homshaw]

I rent commercial offices and a number of things annoy me

Full Repair Leases - when I take an office for three years why should I be expected to pay for things that have worn out over 25 years or because the landlord wants to refit the building at my expense. Should I be paying the equivalent of 6 months rent to get it checked out by a surveyor to avoid any nasties. I should pay for internal repairs. replacing worn carpets etc and the rent should include an element for long term maintenance

Landlord and Tennants Act - Why does the landlord or more likely his solicitor always try to get me to agree this will not apply. It doesn't matter so much to my business to others it does

Letting Agents asking for a reference checking fee - the landlord wants the reference let him pay for it.

Pay the landlord's legal fees as well as my own - It's his solicitor let him pay them

Solicitors - Usually get presented with a document modified on a word processor full of errors and costing a fortune

Having said all that my present landlord can not be more helpful and accommodating

 

[lesliedocherty]

Get a surveyor quick time.

I had a break option this November with a rent review same time.

I instructed my surveyor to negotiate a new break option in 5 years time, to negotiate my rent down by 20% for next 5 years. You need to be proactive in these things. My worry was that by doing nothing i would be in the position you are now, its a lesson learned, but get a surveyor NOW.

 

[roydmoorian]

This stinks - have you talked to the occupiers of the properties on both sides of you and beyond - a quick word may turn something up

 

[Doodle-Noodle]

Don't panic, remember it's the rent as at Sep 09, there may not be an increase at all.

Get onto your solicitor and get a copy of the headlease so you can read the rent review clauses.

Was the Co-op ever trading from the premises or is their lease just held as an investment?

Yes, the Co-Op did trade from our premises for several years before we did - they built a new (bigger) supermarket further down the road and left this one empty for 3 years before we came along.
There are all sorts of restrictions as to use - some of them imposed by the CoOp who won't allow another supermarket/food retailer on the premises, while the council won't agree to change of use for restaurant/takeaway etc; I guess this would affect the number of interested potential tenants if the property were to end up re-available, and ultimately have an impact on the market value.
We did have a solicitor when we took on the lease - the documentation he produced for us prior to completion (Rport on Lease/Underlease etc) didn't point out the onerous obligation on us with regards to the Rent Review provision so I will be taking this up with him when I get to see him.
I'd be surprised if the CoOp took on a lease with such a one sided Rent Review provision though - they are only entitled to pass on to us any rent review imposed on them so it does seem a bit odd.
Having done some calculations we could afford the new rent at a real push but it will severely impact on our ability to mantain current stock levels and increase our ranges in line with our business plan which will in turn of course affect our potential to trade at the level we would hope to be at over the next year.
Paying the back rent though will be virtually impossible, unless we can negotiate some sort of monthly payment plan with our landlord. Depending on what the solicitor says re our obligations under the lease this may (just) be a way of us maintaining our business although it will set us right back just as we are beginning to get somewhere.

 

[mdj101]

I cant believe in your last post you are actually contemplating paying the new rent.

Firstly I would be going mental at the solicitor that you used when you first took on the property. Let him sort out the bloody mess! If he refuses then take him to court.

Secondly. (Something that I absolutely hate and really gets my goat when companies do this, but this is one of those times when I feel it's fully justified). I'm assuming your a limited company? Well it's such a shame you just went bust! Start up again next week in another unit down the road.

Thirdly. If you do vacate, make sure the property is returned to its original state.

They won't let it get this far, the landlords aren't that stupid! BUT you know what, your better off out of this place, move on, start a fresh, if you provide an excellent service and products to match then your customers will move with you. Lesson learn't

 

[IndiCafe]

Very sorry to hear of this turn of events, OP, and can imagine the frustration at not being able to do anything over the weekend.

Firstly I would be going mental at the solicitor that you used when you first took on the property. Let him sort out the bloody mess! If he refuses then take him to court.

Anyone have any info on whether this is a viable option? I'd imagine negligence is a difficult thing to prove - particularly against a solicitor.

 

[patientlady]

Very sorry to hear about your situation. If you give in as i see it then on the next review (which is now only three and a half years away) they can then surely put it up again by a further 57%

 

[Doodle-Noodle]

Very sorry to hear about your situation. If you give in as i see it then on the next review (which is now only three and a half years away) they can then surely put it up again by a further 57%

Yes they could and they probably will as they are clearly immoral greedy b***ards, but we also have another option to break at the same time which we would exercise in plenty of time. This will give us ample opportunity to find new premises etc without the panic we are currently faced with.

 

[Doodle-Noodle]

I cant believe in your last post you are actually contemplating paying the new rent.

Firstly I would be going mental at the solicitor that you used when you first took on the property. Let him sort out the bloody mess! If he refuses then take him to court.

Secondly. (Something that I absolutely hate and really gets my goat when companies do this, but this is one of those times when I feel it's fully justified). I'm assuming your a limited company? Well it's such a shame you just went bust! Start up again next week in another unit down the road.

Thirdly. If you do vacate, make sure the property is returned to its original state.

They won't let it get this far, the landlords aren't that stupid! BUT you know what, your better off out of this place, move on, start a fresh, if you provide an excellent service and products to match then your customers will move with you. Lesson learn't

Nope - we are NOT a limited company so that's not an option as far as I'm aware but we will need to look into all possibilities so I'm not ruling out the idea that we cease trading and get out.....
If we do get out, I shall indeed make as much effort as possible to ensure that the premises are returned to the condition they were in we took it over. We did have the sense to get a Schedule of Condition prepared by a surveyor before we started the work so do have evidence to support any action we take if it comes to it. Goodness only knows what I will do with a full double shop front with electric shutters but it cost a few grand so I shant be leaving it behind!

 

[deniser]

Sorry, I just re-read your posts more carefully and am now confused:

1. you said the Co-op were your landlord but also that they assigned the lease to you.

It can't be both. Did the Co-op grant you a new underlease or did you take an assignment of the Co-op's lease

2. You said you were aware of the Rent Review in September 2009?? Sorry I missed this; I thought the review had come as a shock. Is it just the amount that is a surprise?

How did you get on with your solicitor this morning

 

[AndyPhelps]

This is happening to so many people at the moment, and they wonder why the high streets are closing down, stick to your guns, and worst case, you can always build a website and do it from home.

 

[Stuart Bailey]

you need to check the terms of the lease, your solicitor will help. Unfortuantely it is common wording to have the rent review set back to the rent review date even if it is agreed many years later.

Sometimes rent review is made time of the essence but this is rare.

You will also need to instruct a local commercial surveyor, I would be sceptical that rents have gone up 57% before 2009.

What is date of the lease or the last rent review date?

regards Stuart, Thomas Guise