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  • Commercial Property

    S25 notice

    Does anyone have any experience on serving an s25 on the grounds of LTA54 s30(1)(b) persistence late payment of the due rent over a three year period?
    I’m looking to end a tenancy on the above grounds. But if the tenant goes to court and asks for a new lease to be granted. They was up to a month late every quarter despite my reminders and threats. The last two payments have been on time as I now use CRAR after 7 days from the due date. At their cost. 
    Is it worth issuing the s25 ?
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    I take it you are talking about a commercial lease.What is your real motive for wanting the tenants out.as their rent payment record hardly justifies the actions you are considering

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    They have not been a good tenant imo 
    They have tried to dictate things, and every obligation on their part I have had to push them to the limit to get them to act. The property is very letable and quite frankly I don’t need the grief from them. In the next term.
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    Sorry to hear that

    I assume that their existing lease has come or is coming to an end and not that you are looking to get rid of them during their lease period. Unfortunately of the seven reasons under which the landlord may issue a S25 notice -  'persistent delay in paying rent' is a 'discretionary' and not a 'mandatory' ground. If it goes to court and you lose, the court can award a new tenancy on terms that may be landlord unfavourable.

    If you do decide to serve notice, timing is critical. Suggest you take legal advice.

    Perhaps worth sticking to the CRAR at their cost until they realise just cheaper to pay on time.


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    Proplend Borrower Team
     
    T: 0203 637 8418 |  http://www.proplend.com
    15 Little Green, Richmond, TW9 1QH

    Thanks, that was my fear as they have a surveyor on board who has advised them. I think i'll let the lease hold over and let them make the next move on renewal as it runs out soon.

    I really wanted to know if the grounds mentioned were good reason to not renew, they now know they have to tow the line of i will come down on them.

    thanks again for the input.

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    If you are opposing the tenant's right to renew you will need to be certain of your grounds; just not liking the tenant is not good enough.

    Service of notices is best done by a solicitor.  There are many pitfalls for the unwary.

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    I have no personal feeling towards the tenant, I would like them to fulfill their obligations without me threatening to or taking action. that would be best for all invovled.

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    The situation you describe is unfortunately one of the few pitfalls of commercial property investment. Unlike residential letting at present, it is very difficult to get 'rid' of a 'difficult' tenant. This is with good reason though, as the tenant will have very often invested significant amounts in the property to fit out / generate goodwill and at the end of the day it is their livelihood. Similar to leasehold residential, the lease on the property has a value. 
    Therefore, any court would be hard pushed to rule in the landlords favour on any of the discretionary grounds when it comes to renewal or during the lease for any breach should you try and forfeit the lease.
    All you can do is enforce the lease terms fully and penalise late payment or non compliance until the tenant changes their ways.

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    All opinion and advice given should not be relied upon and the usual due diligence should be undertaken in all cases.