Overview
Tenant misbehaviour presents a difficult dilemma for landlords. When tenants fail to observe their leases, landlords can find themselves agonising over whether to instigate forfeiture (and thus lose a valuable investment), whether to waive the right to forfeit or whether to try and claim damages. However, immediate court proceedings can be the remedy to tackle wayward tenants.
A tenant can be made to reverse unauthorised action: this even extends to requiring a tenant to take a surrender of an unauthorised underlease and forcing the subtenant to vacate.
In a recent case, a tenant who was involved in reconstruction granted a temporary sublease of the whole of its office block to a company with which it had loose connections. The landlord's consent to underlettings was not to be unreasonably withheld, but the tenant did not ask for consent until after the letting had been completed. The landlord applied for, and obtained, a mandatory injunction requiring the sublease to be cancelled and the subtenant to vacate the entire building within five days.
Comment
The spectre of tenants' who flout their leases while "daring" landlords to forfeit can be met with an effective remedy. But landlords have to act very fast if they are to be entitled to an injunction.
Partner Nicholas Cheffings in Nabarro Nathanson's landlord and tenant group has used this strategy in the past. He comments: "Immediate court proceedings by a 'wronged' landlord can often produce a satisfactory result quickly and also send a signal to other tenants that this is not a landlord to be trifled with!".
Further details from Nicholas Cheffings on 0171 491 6669.
Detailed specific advice should be obtained before taking or refraining from any action as a result of the comments made in this article which are only intended as a brief introduction to the particular subject. Nabarro Nathanson is regulated in the conduct of investment business by the Law Society.
For additional information contact Kevin Wheeler, Nabarro Nathanson, Tel 0171 491 6982.
© Mondaq Ltd 1995 Tel +44 171 820 7733.
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