Terminate commercial lease

[roadblock116]

Hi all.
I recently purchased a commercial property and was wondering if I would be able to terminate the current tenant's lease before i take entry.

 

[Paul Kelly ICHYB]

What does their contract say?

 

[roadblock116]

What does their contract say?

Not sure. I am aware that you can ask a residential tenant to leave if you sell your house. Is it the same with commercial property?

 

[Newchodge]

Not sure. I am aware that you can ask a residential tenant to leave if you sell your house. Is it the same with commercial property?

You purchased a commercial property with a sitting tenant without examining their lease?

 

[roadblock116]

You purchased a commercial property with a sitting tenant without examining their lease?

Not all done yet.

 

[Mark T Jones]

What does their contract say?

Whilst some object to this, it is exactly the right response.

Without that, nobody can advise you

 

[IanSuth]

Not all done yet.

Then go no further without really really examining and taking professional advice (from a specialist)

Without that you have no idea what they may be likely to pay you going forward over how long and what your potential liabilities are etc etc - you may as well throw your money at a casino

 

[roadblock116]

Then go no further without really really examining and taking professional advice (from a specialist)

Without that you have no idea what they may be likely to pay you going forward over how long and what your potential liabilities are etc etc - you may as well throw your money at a casino

Current tenant is paying £1K per calendar month. I have a written offer of £1k per week from a prospective tenant.

 

[Newchodge]

Current tenant is paying £1K per calendar month. I have a written offer of £1k per week from a prospective tenant.

So what?

 

[IanSuth]

Precisely

What notice period, what repair liabilities, what deposit does the sitting tenant have in place and what will the new provide. What about personal guarantees from each tenants directors. What types of business is each and how resilient will it be going forward. etc etc etc

This forum is littered with threads form people who looked at headline figures without the info behind them< jumped at something that looked great and were repenting at leisure trying to find a way out

NOT SAYING THE NEW TENANT WOULDNT BE A BETTER BET - BUT TAKE LEGAL ADVICE

 

[roadblock116]

Precisely

What notice period, what repair liabilities, what deposit does the sitting tenant have in place and what will the new provide. What about personal guarantees from each tenants directors. What types of business is each and how resilient will it be going forward. etc etc etc

This forum is littered with threads form people who looked at headline figures without the info behind them< jumped at something that looked great and were repenting at leisure trying to find a way out

NOT SAYING THE NEW TENANT WOULDNT BE A BETTER BET - BUT TAKE LEGAL ADVICE

Current tenant is dubious at best. Lots of underworld activity. New tenant has a corporate structure with a more mature business.
I really wouldn't keep the current tenant due to the current situation.

 

[Newchodge]

Current tenant is dubious at best. Lots of underworld activity. New tenant has a corporate structure with a more mature business.
I really wouldn't keep the current tenant due to the current situation.

Have you read the lease yet? Everything you post is irrelevant. The lease is all that matters.

 

[fisicx]

Current tenant is dubious at best. Lots of underworld activity. New tenant has a corporate structure with a more mature business.
I really wouldn't keep the current tenant due to the current situation.

What does it say in the lease? That’s the only thing that matters. If there is no break clause expect to have to pay a considerable amount to the tenant to get them to leave.

 

[WaveJumper]

Perhaps a wise move would be to go back to the solicitor who advised you on the lease in the first place, the devil as always in these situations is in the detail

 

[kulture]

First you say that you have purchased the property, then you say that it is not yet finalised. So go to your solicitor and talk to them. They should be able to see the lease. They can advise regarding whether the lease can be ended or not.

The other thing to think about is that a good tenant, who pays on time and looks after the property, is worth a lot. One who promises lots may not be a good tenant is a risk.

Ultimately you demonstrate a complete lack of knowledge of what you are doing. So think twice and consider stopping and learning more before spending lots of money.

 

[MBE2017]

Normally a commercial landlord would have to wait until the existing lease is expiring before serving notice to quit, unless a break clause has been put into the lease.

I am suprised anyone would be buying commercial property without knowing where they stand regarding any existing leases and tenants.

 

[Mark T Jones]

Not sure if it's been mentioned yet but

What does the f**king lease say?

 

[WaveJumper]

Not sure if it's been mentioned yet but

What does the f**king lease say?

Not a lot apparently

 

[kulture]

The whole situation sounds a bit suspicious. If this property was available and in such demand, why wouldn’t the person wanting to lease it for £1000 a week purchase the freehold? Is it possible that the existing owner wants to offload the property found a mug and also found someone else to “offer“ such a high rent in order to inflate the price ?

As has been said many time is it in this thread it all depends on the lease. It is incredibly difficult to evict a commercial tenant. It is likely impossible if they are more or less adhering to the lease.

Finally, the OP comments on the dubious nature of the current tenants and would prefer the corporate structure of a new tenant. In the real world a corporate structure may seem respectable but it is easier to close one down and not fulfil any obligations.