Long term tenant with no contract

[msemwall]

Hi,
I am new to this forum. I am commercial tenant and renting my shop for last 13 years. We had no contract in place. I pay my rent every time by cheque for last 13 years per week.
Now recently the landlord is trying to increase my rent. It was previously £250. Which he increased to £300 per week a few months back. Now again he wants us to increase the rent to £500 per week. We can not afford this rent. He is trying to give this shop to someone who is ready to pay this amount and thats why harrassing us. We have no contract in place but for last 13 years I was never in arrears and always paid my rent.
Can he get the court orders to kick us out?
Your help will be really appreciated and I thank in advance for your precious help.
Sam

[Editor]

You will have read previous posts on this commercial property section so you know that the lack of a written contract does not mean that no valid contract exists and that the landlord cannot evict you without a court order as you come under the protection of the Landlord and Tenant Act 1954.
This does not mean though that you can stay on indefinitely on a below market rent - the landlord is entitled to a market rent.
The landlord's position is made more difficult as there is no written agreement with rent review periods etc, but nevertheless he could press for an increase to market levels and take this to court if you cannot reach agrement.
What he cannot do is evict you because he has another tenant waiting.
First you need to find out for yourself what is a reasonable market rent. Ask around for comparables and ask a local agent for an opinion - Chartered Surveyors with local commercial knowledge are the best people to ask.
If you feel your business cannot now sustain a full market rent, maybe now is the time to get out? The opportunity may be there as the landlord may be willing to pay you compensation to get out, knowing the hastle and expense he would have achieving a rent increase to full market level?

[msemwall]

Thank you very much for the information.
I have got one more query. In case I hire a chartered surveyor what are the factors they take into account while deciding the rent.
Is it the rent of the neighbouring properties? or the location or it is fix for the areas? or the property value or the business rates?
Could you please let me know roughly a few factors on which Chartered surveyor decide what the rent should be?
Many thanks for your help. It will be very helpful for me.

[Tax Accountant]

Under thr Landlord and Tenant Act 1954, the landlord can normally give you 6 months notice to quit. The landlord will have to specify whether he is agreeable to granting you a new tenancy or not. You in turn can apply to the court for a new tenancy. The court will decide whether you have an implied tenancy, an oral tenancy or a tenancy from year to year. It will also need to decide whether your tenancy has come to an end or not. It will presumably grant you a new tenancy on terms similar to how the tenancy has been conducted in the past. The rent review pattern in the past will be a significant factor.

You could argue that the recent increase from £250pw to £300 pw was effectively a rent review and that it should apply for at least 3, 4 or 5 years. I believe that this will be your strongest card.

In the worst scenario, the court can lift the rent to market value rent. Market rent is normally determined by reference to comparable rents of what other tenants are paying for similar properties around you and when their rent was last reviewed. The rent is calculated by reference to the frontage and depth of your property. First so many feet at the front is known as zone A @ so much per sq. ft. (most expensive) and then next so many feet is known as zone B at so much per sq. ft. and so on. Account is also taken of other floors in the property, eg, 1st floor, 2nd floor etc.

Rather than going to court, it is advisable to agree the terms of a new lease for your shop so that there are no disputes regarding this in the future. Ensure this is done through a solicitor. If you go to court, it is advisable to retain a solicitor who is experienced in the Landlord and Tenant Act 1954.

Hope this helps.