4 Years 9 Months lease

Bandara

Hi all,

Just wanted to throw this out to see if anyone has the explanation on this.

Why is there a big want by companies to only give four year nine month leases as against 5 year leases? Does anyone know the actually legal reasons?

Reason I ask is because I have a business on a 5 year lease, the company its leased off messed up and meant to give me a 4 year 9 month one, but its too late now and i have the 5 years in writing.

The lease is up very soon and I was wondering where i stand?

1. If they want to get rid of me and give the lease to someone else I presume they'll have to pay me off?

2. If I wish to stay they can't get rid of me?

3. If we cannot agree on terms can I sit tight (squatters rights of sorts) and make them do something to remove me?

Thanks for any opinions.

mikemac

5 years or longer gives you right of renewal.
So when the lease is up you get first option to continue, they can't just get rid of you and get another business in.
A landlord doesn't want this so 4 years and 9 months is what is generally done. Your letting agent messed up big!

I'm more familar with leases for agricultural land. It's always done for 11 months and never for 12 months for similar reasons.

I did a quick google and there is good info here
http://www.brenson-lawlor.ie/winter2003/statutoryrenewalrights.html

ejmaztec

This is all a bit strange. I've noticed a lot of business tenants who have to evacuate themselves and their entire stock and assets for a week. This can't be very good for business as far as continuity is concerned. Also, those members of the general public, who know nothing about property law, might be highly suspicious of a business-person's activities when they vanish overnight, only to return a week later. I know of a case where a government department is a tenant, where even they have to move out for a week to protect the landlord's rights. Strange for people not to trust a government department;).

I don't recall hearing mention of this behaviour in any other country.

Victor

The limit was 3 years and was amended to 5 years because it was impossible / impractical to get office accommodation in some areas as a property developer was building up a land block for later development.

Note that the 3 year limit seems to stand for certain property types.

You still need to pay your rent. You still need to claim your rights - otherwise the lease will just expire and you'll be on the side of the road. You need to get your solicitor to explain your options to you - do you want to be stuck with a long term 15-35 year lease. You might be able to sell it on or have break clauses, but thats a big commitment if ther eis a rental downturn.

Bandara

thanks for the replies guys much appreciated, if i could ask one more thing.

My reasons are different to the normal fears of losing the lease etc. It suits me down to the ground if I cannot agree a new lease and they have to pay me off for the goodwill I have built up in the company (it was a franchise on a brand new business that I took on a lease)

Its now doing huge turnover and is absolutely flying, but a whopper payoff to walk away would be very nice. So basically if an agreement can't be reached, and hypethetically speaking I turned into the leaseholder from hell (making sure to act within the terms of my lease of course ), if we agree to part ways am I correct in saying I will be due a goodwill payment ?