Taking back control – how does a commercial landlord recover possession of a business premises so that it can take occupation for its own business?
Taking back control – how does a commercial landlord recover possession of a business premises so that it can take occupation for its own business?
Scenario: You are the Landlord (L) of a business premises. You have owned the premises for more than 5 years and have granted a lease of the premises to a Tenant (T). The lease is protected by the Landlord and Tenant Act 1954. T pays the rent on time and complies with the terms of the lease. The lease ends in 2 years’ time and T has the right to claim a new business lease however, you want to use the premises for your own business. How can you recover possession of the premises when the current lease ends?
You can oppose the grant of the new lease if, at the end of the tenancy, you intend to occupy the premises for, or partly for, your own business. To intend means more than to contemplate. There must be a reasonable prospect of bringing about the occupation by your own will. You must have reached a firm and settled intention to occupy the premises for the purposes of the business you wish to carry on. A common sense judgement will be taken as to whether the steps you have taken confirm your intention to occupy the premises for the purposes you have stated.
Things to consider to aid in proving “intention”:
- Produce a robust business plan for the intended venture.
- Show that you have considered the position regarding planning permission – confirm that you do not need planning for your intended use or, if you do, show that consent is likely to be granted and that you are taking the necessary steps to obtain the planning permission.
- Demonstrate that you have adequate funding for the project.
- Explain where the staff will be found (if needed) and that they are appropriately qualified for the roles available.
Contact our Real Estate Dispute Resolution team today
If you would like to discuss any issue relating to this blog, please do not hesitate to contact a member of the Real Estate Dispute Resolution Team on 01895 207835 or 01895 207295, or email us at propertydisputes@ibblaw.co.uk
