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DBEGoodman
17-02-2008, 00:39 AM
I really need advice on this matter:

Myself and a group of others formed a company and purchased the freehold interest of a residential block of flats from an insurance company.

Within the block are 12 storage/cupboard units. 4 of them are occupied by a Mr. Dyllon, who resides in the block (under a private tenancy, nothing to do with us), however when we served him notice to vacate the 4 storage units (so that we could rent them out at a higher rent), he told us that he has had occupation of the 4 storage units since 1985 and is an ASSURED tenant and the previous freeholder (i.e. the insurance company) has written to him saying his annual rent will be capped to a maximum of £100 annually for each unit.

Can that be? Can assured tenancies cover storage spaces as well?

Is there any rights he has to occupy forever and always?

Any and all advice would be much appreciated.

PaulF
17-02-2008, 11:48 AM
No! Assured and Assured Shorthold Tenancies are Residential tenancies only, unless the storage facilities were included within the original tenancy agreement. If the agreements are separate then the storage facilities will be under a common law tenancy. If you can't get a copy of this then you might want to consult your lawyer.

DBEGoodman
17-02-2008, 12:41 PM
Paul f, Thank you for that.

It transpires the former freeholder (i.e. the insurance company) had allocated the storage units to this guy based on compensation in lieu of some problems the guy had in his flat (something to do with flooding into his flat year ago, mid 1980’s).

What there is, is a letter from the previous freeholder saying, and the relevant paragraph states:-

“In consideration for the loss that you have incurred as a result of the flooding into your flat, we are prepared to allocate the previously discussed 4 storage cabinets to you on a license/lease of 79 years from today’s date on an annual rent of £50, and increasing over the next 79 years but not exceeding £100 for cabinets 2, 8,14, and cabinet 32 you may occupancy for the same duration rent free”

We have demanded the £100 on all 4 units. He says:
“I will pay a maximum of £100 on 3 units, but the fourth one I occupy rent free”.

For your information he is up to date on his rent on the 3 units.

The question I have, is that can we get possession of any one or all four of the units ever if he keeps up with his rent?

Can we do anything about the one unit he is occupying rent free?

do we have to honour the agreement/letter the previous freeholder wrote to him?

jeffrey
17-02-2008, 16:54 PM
What's all this about a 79-year lease? Is there a lease, registered at HMLR?
If there is a lease but T never registered it, it's probably void for non-registration (although T can still register it).
If there's no lease, the wording is insufficient to create a legal estate.