Failure to Comply with the Lease
Any occupier of premises has a range of legal responsibilities concerning how their business is run on those premises. As a tenant there will be obligations towards your landlord. There will also be planning requirements in respect of alterations and use of premises and duties towards employees and neighbours and in respect of the environment.
Failure to Comply with the Lease
Both landlord and tenant are liable throughout the lease for complying with covenants in the lease. These covenants typically address the payment of rent, repair, use of the premises, alterations and assignment or subletting without consent. Breaches of covenants may be either those which you can subsequently put right (e.g. payment of rent and repair and decorating obligations) or those that you cannot (e.g. unauthorised assignment). For the latter, the landlord can take enforcement action immediately. For the former, the landlord must serve notice giving you an opportunity to comply before he takes further action.
Failure to Pay Rent: Non-payment of rent is the most common breach. The landlord may be able to do any of the following:
(1) take back (forfeit) the lease;
(2) go to court to enforce payment of rent;
(3) seize your possessions at the premises;
(4) commence winding-up proceedings (if over £750 is owing); or
(5) take action against a guarantor.
If the landlord forfeits the lease, there is a Court procedure whereby you can regain the tenancy if you promptly pay the arrears and demonstrate the ability to pay the rent in future.
If you envisage having difficulty with payment of the rent, you should establish the landlord's rights in the event of non-payment - the landlord can enforce some rights without a Court order, making him a dangerous creditor.
Failure to Maintain: If you breach your repairing obligations under the lease, the landlord may have a right of entry in order to draw up a schedule of dilapidations with his surveyor. This will be served on you with a demand that you remedy the breach. If you fail to comply, the landlord can sue for damages (either immediately or at the end of the lease). Damages will be based on the decline in the value of the landlord’s interest. Where there are over three unexpired years of a lease, which has a full term of over seven years, the landlord can only sue if the Court gives consent. Alternatively, the landlord can use his rights generally reserved under the lease to enter your premises, to do any necessary work and recover his costs from you.
Other Breaches by the Tenant: For breaches of other covenants, damages for loss can be claimed by the landlord or he may seek court orders to prevent or enforce action by you.
Breaches by the Landlord: If the landlord breaches his covenants, the most effective response may be to withhold the rent. However, a lease normally requires payment of rent without any deductions. In such instances, take the matter up with the landlord as soon as possible in writing (possibly through your solicitors). This ensures that you have a record of your claim and the date you made it. If you do intend to make deductions against rent due, check with your solicitor that this will not endanger your tenancy.
Failure to Comply with the Lease
Both landlord and tenant are liable throughout the lease for complying with covenants in the lease. These covenants typically address the payment of rent, repair, use of the premises, alterations and assignment or subletting without consent. Breaches of covenants may be either those which you can subsequently put right (e.g. payment of rent and repair and decorating obligations) or those that you cannot (e.g. unauthorised assignment). For the latter, the landlord can take enforcement action immediately. For the former, the landlord must serve notice giving you an opportunity to comply before he takes further action.
Failure to Pay Rent: Non-payment of rent is the most common breach. The landlord may be able to do any of the following:
(1) take back (forfeit) the lease;
(2) go to court to enforce payment of rent;
(3) seize your possessions at the premises;
(4) commence winding-up proceedings (if over £750 is owing); or
(5) take action against a guarantor.
If the landlord forfeits the lease, there is a Court procedure whereby you can regain the tenancy if you promptly pay the arrears and demonstrate the ability to pay the rent in future.
If you envisage having difficulty with payment of the rent, you should establish the landlord's rights in the event of non-payment - the landlord can enforce some rights without a Court order, making him a dangerous creditor.
Failure to Maintain: If you breach your repairing obligations under the lease, the landlord may have a right of entry in order to draw up a schedule of dilapidations with his surveyor. This will be served on you with a demand that you remedy the breach. If you fail to comply, the landlord can sue for damages (either immediately or at the end of the lease). Damages will be based on the decline in the value of the landlord’s interest. Where there are over three unexpired years of a lease, which has a full term of over seven years, the landlord can only sue if the Court gives consent. Alternatively, the landlord can use his rights generally reserved under the lease to enter your premises, to do any necessary work and recover his costs from you.
Other Breaches by the Tenant: For breaches of other covenants, damages for loss can be claimed by the landlord or he may seek court orders to prevent or enforce action by you.
Breaches by the Landlord: If the landlord breaches his covenants, the most effective response may be to withhold the rent. However, a lease normally requires payment of rent without any deductions. In such instances, take the matter up with the landlord as soon as possible in writing (possibly through your solicitors). This ensures that you have a record of your claim and the date you made it. If you do intend to make deductions against rent due, check with your solicitor that this will not endanger your tenancy.