Leading firm, Farleys Solicitors LLP have vast experience in acting for landlords and tenants of Commercial Property. Recently, Farleys’ Commercial Property team has focussed on how the recession has affected landlords and tenants, to find the best ways to help resolve leasing issues during these difficult times.
Services for Tenants in the Recession
Tenants who are struggling to meet their lease obligations will benefit from a review of their leases to ensure they are being fairly charged for rent and services. Where a tenant is unable to continue in occupation of its premises, it may be possible to obtain the landlord’s consent to an assignment or surrender of the lease.
If a tenant’s business is insolvent it is essential to seek early professional advice, and where the lease represents a major liability, it may be preferable to place the company into administration and for the owners of the company to buy back the profitable parts of the business. This enables the business to survive with its assets and employees, but leaves behind the onerous lease. Farleys Solicitors LLP has excellent relationships with non-legal insolvency professionals and provides fast, honest advice you can rely on in times of crisis.
In becoming insolvent, tenants will usually breach covenants in their lease, leaving them open to action from their landlords which could place their assets and stocks at risk. Farleys Solicitors LLP provide fast, accurate advice to protect your business’ possessions if you become insolvent.
Services for Landlords in the Recession
Landlords are in a particularly difficult position. Some landlords will have tenants who are unable to pay their rents and service charges under their leases, and others will be struggling to let their properties.
Farleys Solicitors LLP have solutions for landlords in any situation, including recovering sums due from tenants in arrears, and providing advice and action to deal with tenants who are in breach of their lease obligations. There are a wide range of remedies available to landlords but complex procedures, which if not handled in the proper manner, can result in sanctions against landlords. The most powerful and widely known remedy is forfeiture, but a landlord can also exercise distress against the tenant’s property, disclaim the lease, take proceedings to recover the debt, require any sub-tenant to pay rent direct to the landlord, make withdrawals from any rent deposit and pursue a guarantor or former tenant.
Where a tenant becomes insolvent it is essential that the landlord seeks immediate advice to protect his position, since many remedies become subject to restrictions depending on the particular insolvency process to which the tenant is subject.
For landlords who are struggling to let properties, Farleys Solicitors LLP has designed a special range of flexible leases to attract tenants into occupation. These leases are ‘easy in – easy out’, with break clauses to enable both landlord and tenant to end the lease if necessary. Tenants may be willing to pay higher rents for leases if they know they won’t be tied down to the rent for a lengthy term. From a landlord’s point of view, the lease can be terminated if a more attractive tenant is found who is willing to commit to a longer term or a higher rent.
For advice and assistance on any aspect of Commercial Property, including specialist Landlord and Tenant advice please speak to one of our solicitors on 0845 287 0939 or contact us by e-mail.