Alex had an office building in Stockton-on-Tees, which was occupied by tenants. The landlord had verbal agreements with his tenants. However, there were no formal written commercial leases in place.
After being diagnosed with a terminal illness, Alex wanted to sell his commercial property with certainty.
Problem: How to sell a commercial property without a lease?
A buyer would require sight of the written leases before he/she can buy a commercial property. With no lease in place, the current commercial tenants can easily say they were given very attractive terms (verbally). This poses a high risk, making the commercial property unmortgageable.
Under The Landlord and Tenant Act 1954, business tenancies without a formal lease can still receive legal recognition if an oral agreement was made and/or the tenant has paid regular rent for over a year. Ultimately allowing the tenant a favourable position in law to retain occupancy of the building. This situation means considerable delays to the landlord if they want to sell, and spiralling costs in dealing with removing the tenants.
Option 1: Repossess the property
Due to ill health, Alex felt unable to continue to manage the property. He did not want the hassle of evicting the tenants or the legal repercussions of attempting to peacefully repossess a property with no commercial lease. (If your property does have an active lease, the relevant procedure would involve a commercial lease forfeiture – even then, the tenants have 6 months to appeal based on certain legal grounds or financial hardship).
Nothing is simple in the property world, that’s why we always recommend taking legal advice when buying or selling business property.
Option 2: Sell your commercial property with tenants
We often find ourselves dealing with unmortgeable commercial properties, especially in situations where landlords do not have the time, patience or legal knowhow to proceed towards eviction and repossession.
We work with trusted specialist solicitors on your behalf to ensure all the red tape is dealt with efficiently, and the damage is limited.
Property Saviour came to Alex’s rescue after he found us online – we were able to view the property and make a realistic cash offer, which Alex accepted.
Office building sold due to ill health
I sold a commercial property to Property Saviour due to poor health. They were able to purchase the property quickly and I was updated regularly throughout the process of the sale. Property Saviour did everything they could to make the sale go through as smooth as possible. Their lawyers reacted to all written enquiries generally on the same day or soon thereafter. I would recommend Property Saviour if you are thinking of selling commercial or residential property.
Result: Tenanted office building sold for cash!
We paid his legal fees and completed the sale of the office building really quickly – within 2 weeks. Alex could then concentrate on his wellbeing, with the peace of mind that he was now free from potential legal wrangles and stress.
Do You Have a Property to Sell?
Property Saviour will buy your property in any condition. There are no fees to pay. We can complete within 10 days.
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