Commercial Lease Solicitors

Flexible Leases

• First and foremost tenants in financial difficulty should speak to their landlord.  It is essential that early action is taken before payments are missed and the landlord's powerful rights against tenants in arrears become exercisable.  Where the tenant is in arrears they are at the mercy of their landlord who may terminate the lease or take the tenant's goods as payment.
  
  
• Landlords are under pressure to keep tenants in properties to cover their mortgages and to avoid liability for rates.  It may be possible for tenants to negotiate a variation or temporary relaxation of terms.  If you are unable to pay your rent quarterly in advance, your landlord may be willing to agree payments monthly in advance.  On the other hand, if you are a landlord and your tenant seeks a variation of the terms of the lease, it is essential that legal advice is sought immediately to protect the landlord's position.  Without the right wording, a landlord's future position may be prejudiced by a temporary relaxation of terms.
  
  
• For landlords it is essential to seek legal advice as soon as you become aware that your tenant is in financial difficulty.  Landlords have a range of remedies against tenants in arrears but they have to be exercised properly to avoid liability to the tenant for their wrongful use.  Furthermore, certain remedies may prejudice the landlord's position.  If, for example, a landlord exercises his right of forfeiture and terminates the lease, he loses the rights to future rents.  Similarly, to accept the keys back from the tenant may amount to an implied surrender, releasing the tenant from future liability under the lease.  There are a variety of remedies available to a landlord who does not want to release the tenant from his lease obligations, such as levying distress against the tenant's goods.  Farleys Solicitors LLP also advise landlords whose tenants have become insolvent, where special rules apply.
  
  
• If your tenant has abandoned the property and owes you rent or other sums under the lease you can enforce your debt by obtaining a court judgement against the tenant.  If the tenant doesn't have money you can take a charge against the tenant's property to ensure you are paid your debt with interest when the tenant sells its property.