How We Can Help

Commercial landlord and tenant disputes can be dealt with in a variety of ways depending upon the dispute that has arisen and the relationship between the parties.

Some disputes will involve injunctive relief whereas other disputes may be better dealt with by some initial correspondence and a negotiated settlement.

We assess each matter on its own facts and will outline all of you on all your options and advise you on the best course of action depending upon the objective you want to achieve.

Myerson’s Property Litigation Litigation team are experts at commercial landlord disputes. We have a wide range of experience in these cases and can help you to understand your options and guide you through the process.

Commercial Landlord Disputes

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Commercial Landlord Disputes Expertise

Contested and Uncontested Commercial Renewal Lease Applications

We regularly act for landlords of commercial properties when they either want to renew a lease of commercial premises or want to oppose a renewal lease because, for example, they want to redevelop the property.

The Landlord and Tenant Act 1954 sets out a clear procedure that is to be followed which involves serving notice and potentially issuing Court proceedings. We have a wealth of experience and can guide you through the process.

We will also work alongside our transaction colleagues in the Real Estate Team who will draft and negotiate the terms of the renewal lease on your behalf.

Forfeiture and Relief from Forfeiture

If your tenant is in breach of the terms of the lease then you may want to forfeit the lease. You need to ensure that you do this lawfully and have not waived your right to forfeit the lease as this would allow the tenant to bring a damages claim against you.

We regularly advise landlords on forfeiting a lease either by peaceable re-entry or by serving a section 146 notice and issuing Court proceedings. We also have experience of dealing with Relief from Forfeiture applications and can advise you on all your options should the tenant make this application.

Commercial Rent Arrears Recovery

If your tenant fails to pay the rent to you then we understand that you will want to act promptly to recover the arrears. We have contacts with local bailiffs who we can instruct to attend the property and recover the arrears of rent.

Dilapidations

We recognise that as a landlord it is important to protect your investment and ensure that it is kept in repair.

A dilapidations claim crystallises at the end of the lease and we can advise you on your options and prepare and negotiate a settlement for you.  We can also advise you on remedies that you can use during the term to ensure that your investments are kept in repair and to maximise the amount you can recover from your tenant.

Breaches of the lease

It is common for tenants to breach the terms of the lease and we regularly advise landlords of commercial properties on the multitude of options that are available to them to remedy the breach and ensure compliance with the terms of the lease going forwards.

Break Notices

Leases can contain landlord or tenant break options. We have experience of preparing and serving the break notices as well as advising on the validity of the notices. Failure to effectively serve a break notice will mean that the lease will continue and can have significant consequences for the landlord or tenant.

Applications for Landlord’s Consent

The lease may state that the landlord’s consent is required, for example, to assign the lease to a third party. In this situation, the law places certain responsibilities on the landlord and legal advice should be sought on any applications that are made by the tenant.

We regularly deal with applications for consent and can guide you through the process, the responsibilities that the law places on you and the options available to you.

Tenant insolvency

If a tenant goes into insolvency then as a landlord, you will want to know what position it leaves you in. We regularly advise on all types of insolvency including liquidation and administration. We can also advise you on enforcement options under guarantees and if a guarantor requests an overriding lease.

Rent Reviews

We can advise you on the rent review procedures contained in your lease and the process that needs to take place to effect and record a rent review. Some rent reviews have triggers that involve serving notices. We can guide you through the process and correctly document any review that has taken place. We can also fight your corner if there is any dispute about the rent review.

Right of First Refusal

If you are considering making a disposal of your interest in a building that contains residential flats then by law you must offer it to the tenants before offering it on the open market. Failure to do so is a criminal offence.

We regularly advise landlords in relation to their obligations and can guide you through the process which will initially involve serving notices on the tenants.

Our Approach

At Myerson, we understand that you do not want to be embroiled in costly and lengthy litigation and aim to resolve disputes as quickly as possible. There are instances where you have no option other than to proceed through the Court process if immediate action is required to protect your investment.

If you find yourself in this situation then our experts have a wealth of experience and will be able to guide you through the process and fight your corner for you to protect your investment.

Myerson has a team of experts from across our contentious and non-contentious departments who work together to ensure that the approach to the dispute is the best for each client.

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Case Studies

Case Study 1

Client Intro:

Our client is a landlord of a significant portfolio of commercial properties.

Case Overview:

One of the properties is located in Northumberland and was leased to Marks & Spencer’s PLC (M&S). M&S assigned the lease to The Factory Shop Limited and M&S entered into a Deed of Guarantee and Indemnity in respect of that assignment.

The Factory Shop entered into a CVA and the CVA included provision for the surrender of the lease and compromised the company’s liability for terminal dilapidations.

The CVA cut down M&S’s secondary obligations in the guarantee meaning that M&S’s had no liability under the guarantee in respect of the terminal dilapidations but the CVA could not and did not cut down M&S’s primary obligations in the guarantee meaning that M&S remained liable for the dilapidations in full as if the CVA had not existed.

The lease was subsequently surrendered, and our client moved to address terminal dilapidations, carrying out repair works to the value of £130,000

Sean Hackett, a Partner in the Property Litigation team said “This was a complex matter where we argued that the indemnity was not compromised by the CVA.”

Case Study 2

Client Intro: Akzo Nobel, Imperial Chemical Industries and Dulux Decorator Centres

Our client has a multimillion-pound rental portfolio across England and Wales

Case Overview:

We regularly advise our client in relation to the management of their commercial property portfolio. This includes lease renewals, dilapidations claims, landlord/tenant covenants, rent reviews and break rights.

Laura Pile, a Partner in the Property Litigation team said this type of work demonstrates our capabilities in commercial portfolio management for blue chip corporations.

Case Study 3

Client Intro: Philip J Davies (Holdings) PLC

Our client is a commercial landlord and property developer.

Case Overview:

Philip J Davies (Holdings) PLC held the reversion to a long lease of an entire building that had been rented to Carillion. Carillion had underlet part of the building to a charity.

Carillion entered liquidation and the liquidators disclaimed the head lease, leaving the undertenant in occupation but its right to occupy affected by the disclaimer.

We advised our client regarding their options, given a possible re-letting of the entire premises to a school (which was the condition upon the charity vacating).

Avoiding the situation where the charity became a periodic tenant or seeking a vesting order, our client forfeited the charity’s under lease and granted them a license to occupy, which enabled the charity time to find alternative accommodation and enabled our client to secure vacant possession which enabled the reletting of the entire building to the school.

 

Case Study 4

Client Intro: Marnshaw Limited

Our client is a landlord of commercial property.

Case Overview:

Our client leased commercial premises to Andrew Page Limited (supplier of car parts).

The tenant entered administration. The administrators agreed to sell the assets of the tenant company to Euro Car Parts, a deal which was called in by the Competitions and Market Authority.

The administrators allowed an SPV of Euro Car Parts to enter into occupation of the premises without consent and began trading.

Our client had a new tenant ready to take a new lease of the premises in which the SPV was in occupation and trading. We invited the administrators to surrender the lease or in the alternative allow our client to bring forfeiture proceedings. They refused both.

Our client brought proceedings against the tenant in administration at which point the administrators agreed to surrender, thereby enabling our client to rent out the property to the new tenant.

Case Study 5

Client Intro: Monckton Properties Limited

Our client is a landlord of a number of commercial properties.

Case Overview:

Our client is the landlord of a commercial property in Knutsford Cheshire. The property was let to Tesla Motors Limited who purported to exercise a break option contained in the lease.

The tenant failed to adhere to the conditions of the break so our client issued proceedings for a declaration that the lease is subsisting and a monetary claim for sums due and owing to them. The matter was settled fairly early on in the litigation and it was a good result for our client.

Meet Our Specialists

Home-grown or recruited from national, regional or City firms. Our specialists are experts in their fields and respected by their peers.

Seán Hackett

Seán Hackett

Seán is a Partner and Head of our Property Litigation department

Laura Pile

Laura Pile

Laura is a Partner in the Property Litigation department

Karen Taylor

Karen Taylor

Karen is a Senior Associate in our Property Litigation department

Jennifer Hartley

Jennifer Hartley

Jennifer is a Solicitor in our Property Litigation department.

Vikki Noone

Vikki Noone

Vikki is a Trainee Solicitor within our Property Litigation department

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0161 941 4000