Commercial Lease Minefield

Dundalk Daily

Iam a landlord of a commercial shop which is leased by 2 partners in business together. First lease was for 3 years and for no particular reason it was in one of the partners name. After the 3 years were up I give them another 2 year lease and this time the name of the other partner was put on the lease and then a further 2 year lease with partner number 2's name on it. So in total they have been in the premises 7 years with no arrears or problems.

My solicitor has advised me to write to partner 2 who has been on 2 x 2 year leases and advise him that we are willing to give him a further 2 years providing he vacate the premises for a short period of time to avoid continuity. I have spoken to several solicitors and have received different advice from them all, many not even aware that Tenant-Landlord laws were updated in the mid 90s.

Would I be correct in saying that the continuity issue is too late as the same tenants have been there for 7 years (well over the 5 year barrier which gives them alot of entitlements). My solicitor is off the opinion that we can chance saying that the last 2 leases are seperate from the first original thus avoiding continuity and he thinks the way around this is for tenants to temp vacate the premises and we give them a new 2 year lease.

From my own research these temp breaks from the premises dont stand up in court as its almost impossibe to completely remove them from the premises as they not only have alot of equipment but they have practically rebuilt the premises resulting in them owning all doors, floors etc.

They are more than likely entitled to a much longer lease or relief for what they have spent on the premises.

Any help/guidance appreciated.

Victor

Do you really want to prevent them from gaining rights as sitting tenant?

Can you give them an alternative property? That would mean a complete break. See Mespil Flats cases.

Partner A is not partner B, so cannot claim to have been there over the 5 years (actually check the terms on the 1990s act - does it only apply to some properties).

Dundalk Daily wrote:

From my own research these temp breaks from the premises dont stand up in court as its almost impossibe to completely remove them from the premises as they not only have alot of equipment but they have practically rebuilt the premises resulting in them owning all doors, floors etc.

Whatever about the terms of the lease, if they amend the building, it is still your building.