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How much notice to terminate a commercial lease?

How much notice to terminate a commercial lease?

I realise this is more law than accountancy, but wonder if anyone can help?

A hairdresser pays rent on her salon on a weekly basis.  She signed a 3 year lease in 2006 and has signed nothing since.

She now wants to leave at the end of this month.

Is there a statutory notice period she must give and pay full rent for?

Can the landlady evict her as soon as she tells her she is leaving or must she give notice to do so as well?

I can't find a definitive answer on the web and would be grateful of any advice please ...............

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By neileg
13th Mar 2012 11:28

Tenancy at will

This has become a tenancy at will. I believe the notice period is the same as the rent frequency. However changes in the recent past has given more rights to commercial tenants to renew so you'd best check this out.

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By zebaa
13th Mar 2012 17:32

Evict - no.

Your question:

Can the landlady evict her as soon as she tells her she is leaving or must she give notice to do so as well?

Answer: The landlady can not evict her for the period paid for.

The tenant may leave at any time, but should be within the time she has paid for.

 

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By bukkuz
mrme89
13th Mar 2012 18:45

Are you sure about this and if so do you know of any case law. I was lead to believe that the Landlords and Tenants Act 1954 suggests that there should be a three month period given by both parties to protect both (so long as the rent has been paid), even if the lease has expired. If that is not the case I would be really interested as I have a similar situation where the landlord is forcing 3 months notice but the client has no money and wants to give back the keys

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By zebaa
SteLacca
19th Mar 2012 17:41

L & T 1954 Act does not apply

The Landlords & Tenants Act does not apply to tenants at will. Rather than give a list of case law my suggestion is you think about the phrase 'at will'. In this case it seems, given the information supplied, that each week one lady gives the other rent, presumably for the following week. In this case either could - at will - decline to either pay or receive the rent and the tenancy would be over. If the rent runs Monday to Sunday and pay-up day is Friday either party could give two days + a weeks notice. Of course the landlady might have a problem getting possession in a case like that but that is another matter. My only other suggestion is to read the old lease to make sure there are no rolled over conditions. It would be best if both parties knew as soon as possible of any change, in the case posed, once the landlady has accepted the rent the tenant can give notice of one week with the knowledge she is secure for that week (but not any longer). In practice, depending on how they have got on, there may but further conversation, perhaps even an offer of rent reduction. Any landlord or landlady knows tenants are not forever but will try and keep good tenants, because there are LOTS of bad ones, but that again is a different story.  

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14th Mar 2012 08:34

thanks

for your comments.  I've passed the advice on, stressing the point that I am an accountant - not a legal expert and so she may be wise to seek further advice :-)

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19th Mar 2012 14:46

Terminating Commercial Lease

If, at the date on which the lease says the tenancy will end (2009), the tenant remains in the premises then the tenant must continue to pay rent and fulfil the lease obligations unless he/she has given the landlady 3 months notice. These obligations cease once the 3 months notice period has expired.

You can download a booklet 'renewing and ending business leases: a guide for tenants and landlords' on the businesslink website.

 

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