Q&As

A landlord company has let commercial property on a two-year lease, which has now expired. The tenant has remained in occupation while the property is being marketed. The tenant has now stopped paying rent and the landlord wishes to recover possession. What options are available assuming the tenancy is either a tenancy at will or a periodic tenancy? What are the implications if the landlord sends a monthly statement of arrears and continues to charge interest on arrears of rent from the date of demand for possession?

read titleRead full title
Published on LexisPSL on 06/07/2015

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • A landlord company has let commercial property on a two-year lease, which has now expired. The tenant has remained in occupation while the property is being marketed. The tenant has now stopped paying rent and the landlord wishes to recover possession. What options are available assuming the tenancy is either a tenancy at will or a periodic tenancy? What are the implications if the landlord sends a monthly statement of arrears and continues to charge interest on arrears of rent from the date of demand for possession?
  • Assuming a tenancy at will, can the Landlord (L) demand/accept rent, and chase up arrears, without prejudicing its position in respect of recovering possession if the Tenant (T) remains in occupation after any notice has expired?
  • Assuming a periodic tenancy, one option may be for L to forfeit the lease for non-payment of rent. In that situation, L must not demand/accept rent. However, can L demand/accept payments from T as 'mesne profits' to offset arrears of rent and the ongoing liability?
  • May a monthly statement sent to T showing arrears be construed as a continuing demand for rent?
  • Could L be prejudiced if L continues to charge interest on arrears of rent from the date of the demand for possession?

A landlord company has let commercial property on a two-year lease, which has now expired. The tenant has remained in occupation while the property is being marketed. The tenant has now stopped paying rent and the landlord wishes to recover possession. What options are available assuming the tenancy is either a tenancy at will or a periodic tenancy? What are the implications if the landlord sends a monthly statement of arrears and continues to charge interest on arrears of rent from the date of demand for possession?

Assuming a tenancy at will, can the Landlord (L) demand/accept rent, and chase up arrears, without prejudicing its position in respect of recovering possession if the Tenant (T) remains in occupation after any notice has expired?

A tenancy at will should be terminated 'at will', ie immediately, rather than on notice.

Tenancies at will only arise in very specific situations and, broadly speaking, this is generally where negotiations are ongoing for the grant of a new lease. Please see our Practice Note: Using licences and tenancies at will.

To avoid a periodic Landlord and Tenant Act 1954 tenancy being implied, a

Related documents:

Popular documents