Joint landlord is also a tenent

[Tax Accountant]

Commercial property bought in 1987 by two joint owners and let to their jointly owned company. 1st joint-owner left the company after a dispute. This effectively left the tenant company in control of the 2nd joint-owner.

It is believed that a lease was prepared at the beginning but its terms or the whereabouts is not known. The 2nd joint-owner/tenant initiated a new lease which was signed by the 1st joint-owner. However, the 2nd joint-owner / tenant denies ever receiving or signing it. This lease was from 1999 to 2015 with rent reviews every 4 yearly. The initial rent was set at the same level as the amount being paid since 1993. This amount has continued to be paid until March 2005 in the joint bank account of the two owners. As the bank account has been closed in March 2005, no rent has been paid by the tenant since then.

The 1st joint owner has been pressing since late 2002 to implement the rent review due in September 2003. A professional rent review instructed by the 1st joint owner, and paid for by the tenant, has proposed an increase of 2/3rds in the rent. The 2nd joint owner/tenant states that they cannot afford it and thereafter ceased all communications with the 1st joint-owner.

The 1st joint owner will not get any support from the 2nd joint owner in his attempts to implement the rent increase and/or to evict the tenant company. It is even possible that the business previously carried on by the tenant company may have been transferred to the 2nd joint-owner personally without consent of the 1st joint-owner.

What are the options of the 1st joint owner in acting alone in this matter to implement the rent review due in September 2003 and/or to evict the tenant.

From Karongo

[Tax Accountant]

To the editor:
As there are no replies to the above post, would the editor please oblige?

The essential quetion is: Can only one joint-owner bring proceedings by himself against a tenant for breach of lease terms (implied or otherwise) ?

The other joint-owner will not cooperate because he/she is also the tenant.

The advice received is that this is not a Landlord & Tenant Act dispute so much as a partnership dispute where the two partners who own the property do not see eye to eye on what they should do with the tenant. It is suggested that the court could only force the parties to dissolve the partnership by way of a sale in the open market.

Comments would be appreciated.

[Editor]

This is a complex situation and involves more than the usual landlord / tenant issues.
I suggest you consult a good solicitor - there are some excellent specialist property solicitors listed on our Directory:
http://www.landlordzone.co.uk/dir/solicitors-legal.htm

[Tax Accountant]

I am surprised that I have not attracted a single reply to basically give an opinion whether only one of the two joint owners can issue notices and/or proceedings against a tenant. The other joint owner will not cooperate because he/she is effectively the tenant.

I would have thought that there must be some competant solicitor/barrister in this forum to reply in the first instance.

Never mind.

[Paul_f]

Karongo. You don't honestly deserve a reply. Do you think barristers are just waiting on the site to field your question?

For God's sake pay for one like anybody else and get the job done properly.

It's not a community service; you only get that on Monopoly!

[Tax Accountant]

Paul F

Perhaps you should take a look at tax questions forum.

[SteveP]

"Commercial property bought in 1987 by two joint owners."...........so those two owners are "the landlord"

"and let to their jointly owned company"....So that company is "the tenant"

"1st joint-owner left the company after a dispute. This effectively left the tenant company in control of the 2nd joint-owner"....doesn't change anything the company is "the tenant regadless of who own or controls it.

"It is believed that a lease was prepared at the beginning but its terms or the whereabouts is not known....."This may prove the most difficult issue"

"The 2nd joint-owner/tenant initiated a new lease which was signed by the 1st joint-owner. However, the 2nd joint-owner / tenant denies ever receiving or signing it." If you have a copy of the lease signed by the parties he can't deny it. If there no signed lease only a court can decide whether this purported lease is valid.

This lease was from 1999 to 2015 with rent reviews every 4 yearly. The initial rent was set at the same level as the amount being paid since 1993. This amount has continued to be paid until March 2005 in the joint bank account of the two owners. As the bank account has been closed in March 2005, no rent has been paid by the tenant since then.

The 1st joint owner has been pressing since late 2002 to implement the rent review due in September 2003. A professional rent review instructed by the 1st joint owner, and paid for by the tenant, has proposed an increase of 2/3rds in the rent. The 2nd joint owner/tenant states that they cannot afford it and thereafter ceased all communications with the 1st joint-owner."

It would appear that the tenant has agreed by his actions that a rent review was due, but once again this may not be a valid lease if both parties have not signed it.

"The 1st joint owner will not get any support from the 2nd joint owner in his attempts to implement the rent increase and/or to evict the tenant company. It is even possible that the business previously carried on by the tenant company may have been transferred to the 2nd joint-owner personally without consent of the 1st joint-owner."

Thjis has no real relevance in relation to landlord and tenant, but you will have to look at the articles and memorandum, minutes of directors meetings, et, to determine whether the 2nd owner has acted beyond his authority as a director of the company. You say the 1st owner "left the company", which implies that he relinquished control, so he isn't in a position to complain when the 2nd owner controls it in the way that he sees fit.

"What are the options of the 1st joint owner in acting alone in this matter to implement the rent review due in September 2003 and/or to evict the tenant."

I think the only option is to obtain proper detailed advice, following a review of all of the paperwork, from a solicitor specialising in Landlord and Tenant. The issues are far to complex, and the evidence presented here far to thin, for you to expect any other advice.

[Tax Accountant]

Steve,
Thank you for your time and thoughts. I have been discussing this with solicitors and have made an appointment to see a commercial litigation solicitor specialising in matters relating to properties.

Thanks again for your time.