Business premises question:

I own a commercial building which I rent out. The tenant sublets part of that building to someone else. My worry is that the tenant may be in money difficulties – is there any way I can get the sub-tenant to pay his rent direct to me (rather than to the tenant – which means I may never get it)?

posted in Business premises | 2 responses

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Good Lawyer Guide's response

If your tenant has got into rent arrears, then you can insist that any sub-tenant pays that rent direct to you (and not to your tenant). You need to get a lawyer to serve the notice for you on the sub-tenant (it is a notice under Section 6 Law of Distress (Amendment) Act 1908). But, you can only do this if your tenant has actually fallen into rent arrears – you cannot do it simply because you think the tenant might eventually get into arrears.

Daniel Stanton

Daniel Stanton's response

Section 6 notices are very straightforward and should not be too costly for your solicitor to deal with. You can help your solicitor by making sure you have full contact details of the tenant and subtenant. A conversation beforehand with the subtenant may help to alleviate any fears the subtenant may have about receiving a 'formal notice' through the door.

Do remember that if you decide to forfeit the lease, the subtenancy will disappear as well, but the subtenant may be able to obtain "relief from forfeiture" through the courts. A timely offer of a new lease after forfeiture has taken place (not before) may be useful.

Please note that this is general advice and the application of the law depends very much on your own circumstances. Accordingly without looking at the matter in detail, it is impossible to advise you fully.