Commercial property litigation: explained
If you’re a landlord or managing agent of commercial property, finding yourself in a dispute can be stressful, costly and time-consuming. In certain circumstances, it can be very challenging to find a solution without professional legal intervention. In this blog, we outline what you need to know about commercial property litigation.
What is commercial property litigation?
Commercial property law covers all legal matters related to business premises, including buying, selling, leasing, developing, managing and investing in property. Unfortunately, disputes do sometimes arise, potentially involving commercial landlords, tenants, managing agents and investors. Whether you’re pursuing or defending a dispute, the process can have significant financial and operational implications on you and your business.
What we can help with
Whether you own a freehold or leasehold property, our team of specialists can help with all types of commercial property litigation, including but not limited to:
- Service of and assessing the validity of s.25 and s.26 notices under the Landlord and Tenant Act 1954
Such notices will be time sensitive, and the notice period given may vary depending upon the individual circumstances of each case. The notice will be a pre-requisite to any lease renewal proceedings that follow and therefore advice should be obtained to ensure accuracy
- Lease renewal proceedings under the Landlord and Tenant Act 1954
Where a Landlord or Tenant are unable to agree terms of a lease within the required timescales of either a s.25 or s.26 notice, renewal proceedings will be required to protect the respective renewal rights of either party
- Interim Rent Applications
A Landlord or Tenant may be concerned about the amount of rent payable for the period before the renewal lease terms have been agreed. Advice should be sought as to whether making an application will be favourable
- Forfeiture proceedings
If a tenant breaches their lease agreement landlords may be able to forfeit the lease. Equally, a tenant may be faced with a scenario where an application for relief from forfeiture is required. Certain legal procedures must be followed to do this, so advice is essential
- Disputes relating to Repair Covenants
Repair covenants govern the responsibilities of both Landlord and Tenant in a lease and will be referred to in times of disagreement on who is liable to pay for certain repairs
- Disputes relating to Recovery of Rent Arrears
Landlords will often find themselves in the unfortunate scenario where their Tenant is not paying rent, thereby leaving them in financial difficulty. There are various options available to a landlord and caution will need to be exercised to protect the rights of the landlord
- Disputes relating to the liability of a Guarantor and Notices under section 17 of the Landlord and Tenant (Covenants) Act 1995
Where a commercial lease has been assigned, and an Authorised Guarantee Agreement has been entered into, the former tenant may be bound to pay certain charges. Time will be of the essence when serving the required notice
- Management company disputes
Service charges can sometimes cause disagreements if the tenant believes they are being overcharged
- General landlord and tenant commercial disputes
Disputes could arise for several reasons, including break clauses, rent reviews and more
- Dilapidation claims
At the end of a lease, landlords and tenants may sometimes disagree over who is responsible for paying for repairs and bringing the state and condition of a premises in line with the terms of the lease.
Commercial lease advice
Legislation regarding commercial property is complex and ever-changing, so it’s vital to seek specialist legal advice when negotiating the terms of commercial leases. We will clearly explain the roles and responsibilities of management companies, so you can ensure you are fully compliant with regulatory requirements. Plus, we can offer clear and comprehensive expertise to owners of leasehold properties.
What Attwaters can do
Our specialists take a pragmatic approach to dispute resolution, exploring all available avenues to find the approach that is best for you. From alternative dispute resolution methods to litigation proceedings, we are experienced in representing clients both in and out of court. Whilst we always endeavour to assist both parties in arriving at a satisfactory agreement, we understand that this is not always possible. We will always aim to achieve the best possible resolution for your circumstances.
To find out how we can help you, please get in touch with our reliable team on: disputeresolution@attwaters.co.uk or call 0203 871 0110.
