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Commercial Leases. Landlord & Tenant Act Review

Comment 9th July 2010

The present Act states that the outgoing tenant of business premises is liable for the rent for the duration of the lease if the new tenant defaults. It also states that the tenant is required to pay all the Landlords costs. We sold our catering business with a new 15 year lease. According to the terms of this lease ( a copy of the old one started about 30 years ago) we are responsible for the rent until we are 72.  The Landlord would not allow us to have a AGA The current rent is 22k a year. We are also responsible for all dilapidations throughout the lease if any of the tenants do not fulfill their responsibilities. In the 21st century this law is outdated. The Federation of Small Business's have tried many times to get this Act altered. It is weighed solely in the Landlords favour. We had to pay 15k for repairs to the landlords building, even though we had only been tenants for 2 years. FRI leases should be abolished. It is the Landlords building, he owns it, and in the long term benefits from repairs his tenants are made to pay for. Business rents should not be tied to the cost of the building. In Cornwall the rents are becoming so high due to the inflated cost of the premises. Business's are unable to keep raising their prices to pay for the rent.

Why does this matter?

The terms of this act is a deterent to business's entering into this type of lease. No one wants to sign a lease which could come back and bite them on the bum 10 years down the line. This does not happen with residential leases, so why with commercial premises.

This is one of the main reasons why so many business premises are empty. It is possible to go to court to try and get a lease altered, but the tenant not only has to pay his costs but the landlords also.

Is this fair?

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