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maidstone98
03-04-2009, 13:43 PM
Guys - quick question

Just about to get a tenant in via a Corporate Let (i.e. corporate will be signing the tenancy agreement). The property is leasehold so is insured by the leaseholder, and contents will be covered by the tenant.

Question: If the property was to be uninhabitable (e.g. fire, flood or other), then is the corporate/tenant liable to claim from the landlord (i.e. me) to cover the cost of rehousing elsewhere?

Thanks in advance

Olly

jeffrey
03-04-2009, 14:12 PM
1. Call owner L, the company C, and the occupier X.
2. L lets to C (non-AST Agreement, 'A1'). C sub-lets to X (perhaps AST, 'A2').
3. Under A1, there will usually be a rent suspension clause. If the property is uninhabitable because of an insured risk occurring other than due to C, C is free- for the time being- of rent payment obligation. L claims on own insurance policy.
4. L has little control over A2 once it begins, so A1 should restrict how C can sub-let to X.