HAVING spent a considerable amount of time, money and effort to achieve a fine, well-drafted lease, how many property owners then put the lease away and never look at it again?
Being familiar with the terms of your lease and getting advice from a solicitor about applying the terms of it at appropriate times can help ensure that your property is kept well maintained, that rent is received at a proper level and that the lease is either renewed or terminated on favourable terms.
As a landlord you should always keep an eye on your bank statements to check that rent is being paid and any missing or late payments should be discussed with the tenant.
If the tenant cannot or will not pay the rent you should discuss with an agent whether the property could be easily re-let. If it could, you should immediately take advice about forfeiting the lease.
If your tenant is not repairing the property as you would wish, your surveyor can prepare a Schedule of Dilapidations requiring work to be carried out.
If the property is in a very poor state your solicitor can advise you whether or not you can forfeit the lease.
If the disrepair is not that bad, or if the lease has a relatively long period to run, it may be that your lease contains a clause which permits you, as the landlord, to go into the property and carry out the repair work yourself.
You can carry out the work to the standard you require, provided that the tenant has failed to do the work having been given notice.
You can then recover costs from the tenant as a debt. This can be a much quicker and more efficient way of ensuring that your property stays well repaired.
If the lease is coming to an end you need to consider whether you would like the property back.
Ideally, you should approach your solicitor and agent six to 12 months before the lease comes to an end, having decided how you wish to proceed.
Your solicitor will then be able to put in place the relevant notices (if the lease is protected), Schedules of Dilapidations or marketing strategies.
If the lease is protected you should be aware that the Landlord and Tenant Act 1954 is being fundamentally amended from June 1 2004.
Landlords will now be able to apply to the court either for the grant of a new tenancy or, more importantly to terminate the tenancy and obtain vacant possession.
Knowing the terms of your lease can help ensure that your property is managed both profitably and efficiently.
If you would like advice about a lease please contact Withy King Commercial on 01793 536526.
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