Business lease clause - sharing occupation
Business lease clause - sharing occupation
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steveonts

Original Poster:

170 posts

93 months

Friday 28th October 2022
quotequote all
So we have a leased property which is kind of an events space but has been used as a yoga room in the past. We would like to bring in independent practitioners to run sessions in the space, yoga, pilates, tai chi, martial arts etc. So mainly fitness type stuff. The landlord is ok with it but the lease has a clause that might cause an issue. Anyone know hows about leases,could you tell me if we could just remove this clause from the lease? Landlord is ok with that but only wants to remove the part that deals specifically with our request as she doesnt want us subletting the whole thing to someone on a long term basis.

The clause in question is

'6.9.2 part with or share the possession or occupation of
the whole or any part of the Property save that the Tenant may
assign this Lease with the prior written consent of the Landlord
(such consent not to be unreasonably withheld or delayed).
Immediately following an assignment the Tenant shall notify the
Landlord in writing and at the same time provide a true copy of
the assignment'

Would bringing someone in on set days count as sharing possession or occupation?

Thanks in advance.

Rufus Stone

10,526 posts

72 months

Saturday 29th October 2022
quotequote all
Who will the people attending the sessions be paying, you or the person running the sessions?

twohoursfromlondon

1,595 posts

57 months

Saturday 29th October 2022
quotequote all
If you and the landlord are both in agreement to remove this clause from the lease, which would then permit you to (I am guessing) underlet to these other practitioners, doesn’t that provide the solution you’re seeking?

steveonts

Original Poster:

170 posts

93 months

Saturday 29th October 2022
quotequote all
Rufus Stone said:
Who will the people attending the sessions be paying, you or the person running the sessions?
The customers will pay the people running the session. The people running the sessions will pay me an amount each month.

steveonts

Original Poster:

170 posts

93 months

Saturday 29th October 2022
quotequote all
twohoursfromlondon said:
If you and the landlord are both in agreement to remove this clause from the lease, which would then permit you to (I am guessing) underlet to these other practitioners, doesn’t that provide the solution you’re seeking?
I think the landlord is a bit worried that should we remove the clause in its entirety, I might go ahead and rent the whole unit as something undesirable to them. Perhaps I should look at some more leases and see if i can find a clause worded a little differently.

twohoursfromlondon

1,595 posts

57 months

Saturday 29th October 2022
quotequote all
steveonts said:
twohoursfromlondon said:
If you and the landlord are both in agreement to remove this clause from the lease, which would then permit you to (I am guessing) underlet to these other practitioners, doesn’t that provide the solution you’re seeking?
I think the landlord is a bit worried that should we remove the clause in its entirety, I might go ahead and rent the whole unit as something undesirable to them. Perhaps I should look at some more leases and see if i can find a clause worded a little differently.
You could maybe get the clause re-worded to allow temporary sub-letting in part of this nature, subject to landlord consent, without the under-letter benefitting from any security of tenure etc (as that will be a landlord’s valid concern).

I’m not a solicitor btw, but I regularly deal with commercial leases.

Rufus Stone

10,526 posts

72 months

Saturday 29th October 2022
quotequote all
steveonts said:
The customers will pay the people running the session. The people running the sessions will pay me an amount each month.
Thanks.

I would think that all that needs to be done is that lease clause needs be amended so that you can sublet with the landlords permission.

Your sublease with your tenant would need to exclude security of tenure under the Landlord and Tenant Act 1954, and be for a term ending no later than your lease.

soxboy

7,052 posts

235 months

Saturday 29th October 2022
quotequote all
I would suggest looking what is referred to as a side letter which is just between you and the landlord for this current situation.

Ask the landlord if their solicitor can draw one up and you pay the fee.

surveyor

18,395 posts

200 months

Saturday 29th October 2022
quotequote all
As Sox-boy this does not need to be over complicated.

A side letter to the effect that the landlord permits the tenant to allow the use of room x by different users provided that no tenancy is created would suffice.

I’ve put no real effort into my wording so don’t just use it!