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Question

Landlord Wants Tenant to Leave (England) | Sub-letting and Assigning Tenancies (England) | Types of Tenancies (England)

Commercial company let

6 Sep 2017 | 7 comments

There are Rent arrears so is a section 8 appropriate ? It’s an agreement for the company to let to other Tennats

What is the process for notice and possession in such cases ?

Answer

7 Comments

  1. guildy

    If it’s during the fixed term, you would need to check the terms of the tenancy for a forfeiture clause. If there is such a clause, the tenancy can be forfeited by way of court proceedings as long as no rent has been demanded (to be honest, forfeiture is a bit complicated for a quick reply here).

    If the tenancy is periodic, it can be either forfeited as above or, a notice to quit can be issued which needs to be at least a month and expire day before rent is due (assuming rent is calendar monthly).

    Have in mind, if the occupiers are on assured shorthold tenancies (which is the most likely), once the company tenancy has been brought to an end, the occupiers become the tenants of the head landlord and so they will then need serving section 21 (or section 8 if they’ve not been paying rent).

    Please see this article which covers subletting similar to this.

  2. eden2011

    the clause in the agreement is

    (7.3) Subject to the condition that a Landlord must obtain a court order for possession of the
    Property before re-entering the premises; if the Tenant does not:
    a) pay the rent (or any part of it) within 14 days of the date on which it is due; or
    b) comply with the obligations set out in the agreement
    then the Landlord may re-enter the Property and end the Tenancy.

    Does this mean a NTQ can be served?

  3. eden2011

    The actual name on the agreement is called this –

    GUARANTEED RENT AGREEMENT
    FOR A RESIDENTIAL DWELLING

  4. eden2011

    commercial Guaranteed Rent Scheme

  5. guildy

    It sounds like what we would call a “rent to rent” agreement so the link in my earlier reply is perfect for your needs.

    When it’s periodic, you can always serve a notice to quit but check the terms for any specific length. If no length is specified, it will be equal to a rental period (e.g. a months notice if monthly rent).

    The clause you refer to is a forfeiture clause, so it could be forfeited too (but that’s more complex). Would the occupiers be prepared to sign a new tenancy? That could be an act of forfeiture if the head tenant has been put on notice of intentions.

    As we say though, notice to quit is simpler (but potentially longer) because once that expires the head tenancy is at an end and the occupiers become the head landlords tenants.

  6. eden2011

    onje last question, a deposit was paid, does it have to be secured in the normal way?

  7. guildy

    You can never enter when people are in occupation. A court order is always required.

    The deposit didn’t need protecting for the rent to rent agreement but assuming the occupiers are ASTs, their deposits will need to have been protected in order to serve them a section 21 (or return deposit first).

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