New Landlords

[Trevor]

Our lease ran out in Sept 2004.

Around that time my landlords sold the industrial estate. Over the next 6 months the estate was sold twice more. No one contacted us regarding a new lease. We just kept on paying our rent to whichever Landlord we had at the time. I have now (Dec 05) received a letter from my present landlord, stating that they will be implementing a new lease. This lease will run for three years backdated to Sept 04. The rent is to be increased by 33.33% and this will also be backdated.

Question.
Can they backdate the rent beyond the date that they purchased the industrial estate. Can they implement the lease from that date. As I am out of lease if I fight the rent increase can they refuse me a new lease and ask me to leave the premises

Sorry if the above sounds a bit familiar to you all but I am new to this site and am not familiar with historic questions

[yeahbutno]

A more expert opinion will doubtless be along shortly!

A rent review as part of an ongoing lease usually CAN be backdated. However, in this case I don't THINK it can be. As a landlord with the end of a lease looming shortly (my debut for that situation) our surveyor has advised it might be worth delaying the new lease for a year or two while the rental market rises so that the new lease is at a higher rent, BUT to be aware that we cannot backdate. The lease seems to be very much a "standard" commercial lease (if there can be such a thing; doesn't contain anything unusual anyway)

Unless your original lease states otherwise, you have security of tenure legally, and you cannot be evicted unless your rent falls into arrears or you breach the lease in some other way. AFAIK the new rental value is negotiable in just the same way as if it were a rent review, but ultimately if the new rent is the going rate then you'lll probably end up having to pay it. 33% does seem like a huge hike, but obviously it depends on when the last review was, and whether your rent is well under market value or not.

It's probably worth employing a good surveyor with local commercial experience to advise you on both value and procedure

[Editor]

Whether or not you were a protected tenant - not excluded from the Act - under the original tenancy, you are now as the landlord has accepted rent in the holding over period.
As a protected tenant you are in a strong possion and need not fear any bullying tactics on the part of your new landlord.
The terms of the new lease, any interim rent level, and the starting point of the lease are open to negotiation.
Technically the landlord should serve you with a section 25 notice ending the original tenancy and offering you new terms. You can then reply with your proposed terms and negotiations can begin.
Its far better to try to reach agreement without going to court, which will be an expensive process. Therefore, if you can agree on a fair rent going forward, you may settle on a figure to cover a modest increase in interim rent over the holding over period and start the new tenancy from now.
If you cannot reach agreement or you cannot decide what is a market rent, then I suggest you engage a chartered surveyor to represent you.

[Trevor]

thank you both for your help. I will keep you informed of progress

[Tommy]

I am in a similar situation. The original lease was for 2 years from March 2003 and excluded L&TA 1954 (Part II) and I have been holding over on the original rent for more than 12 months and no approach has ever been made to negotiate an interim rent. Am I really now protected by the L&TA?

[yeahbutno]

Possibly Tommy, as a court may view it that the landlord has effectively given you right of tenure by virtue of the fact that he hasn't asked you to vacate at the end of the non L&T lease. However, I suggest you probably need some proper legal advice on this one!

[SteveP]

Its far better to try to reach agreement without going to court

I could not agree more. You will find this link useful I am sure.

http://www.rics.org/RICSservices/RICSDisputeResolutionService/business_scheme.htm

[Tommy]

Thank you for your help.