In a recent case, Anwar Legal acted for a commercial landlord in Manchester regarding the forfeiture of a commercial lease and recovery of rent arrears, losses, and legal costs. This case study sheds light on the process and its profound implications for commercial landlords grappling with delinquent tenants and rent arrears in England and Wales.
What Happened? Persistent Rent Arrears and Tenant Misconduct
Our client, a diligent commercial landlord, found themselves entangled with a tenant legally operating a Takeaway from the premises. However, the tenant was possibly illegally sub-letting the first floor of the premises as a residential dwelling and/or another business.
Although the tenant paid rent on a regular basis for a number of years, there was a long period when the tenant did not pay any rent, and the tenant put forward the proposal of the lease being assigned to a third party. Our client put forward the conditions of assignment, in accordance with the lease, but the tenant refused to agree to those conditions.
A few months after the request for assignment, the commercial landlord was suspicious of whether the lease had been assigned but had no evidence. In any event, there was a serious issue of substantial rent arrears. Month after month, the tenant’s payments were persistently delayed, resulting in an accumulation of unpaid rent. Despite the commercial landlord’s consistent pursuit of payment, rent arrears continued to mount which straining the landlord and tenant relationship.
How We Settled The Commercial Landlord and Tenant Dispute?
Under the terms of the lease, the landlord was able to forfeit the lease by peaceful re-entry for the substantial rent arrears. Bailiffs and locksmiths were instructed to enter the premises and change the locks of the shutters and doors. A notice was placed on the shutters to inform the tenant the lease had been forfeited. Any attempt to re-enter the premises would be illegal and the police would be called.
After the forfeiture of the lease, on two occasions the tenant attempted to gain re-entry into the premises. As a result, bailiffs were instructed to occupy the premises, during the evening for 7 days, to prevent the tenant from gaining re-entry and to prevent any damage to the premises y. Also, the bailiffs would notify the police if the tenant committed trespass and nuisance. In the end, the landlord legally regained control of their premises.
Due to the substantial costs of the forfeiture of the commercial lease, Anwar Legal was instructed to seek recovery of the landlord’s losses including (a) rent arrears (b) bailiff and locksmith fees for forfeiture (c) bailiffs occupying the premises for 7 evenings (d) legal costs and more. After serving a Letter of Claim, and then a Statutory Demand to bankrupt the former tenant, common sense prevailed. The former tenant settled the dispute and agreed to pay the monies due to our client’s satisfaction.
Conclusion: Forfeiture of Lease by Peaceful Re-Entry
The successful execution of the forfeiture of lease strategy in this case underscores its effectiveness in addressing landlord and tenant disputes.
If you find yourself entangled in a similar predicament, our expertise in commercial landlord and tenant disputes in England and Wales is unrivaled. We offer a swift, effective, and legally sound solution to your property dispute issues.
Do not allow delinquent tenants to erode your profits or property control. We can act as your guiding compass in commercial landlord and tenant disputes.
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