Commercial Property Disputes Solicitors

No commercial lease automatically imposes a repairing obligation on the tenant. The obligation depends on the lease’s wording. A full repairing and insuring lease places all repair and maintenance costs on the tenant. A lease with an internal repairing only covenant limits the obligation to internal repairs and decorations. A lease incorporating a schedule of condition limits the tenant’s obligation to return the property in no worse condition than at the date of grant.

Section 18(1) of the Landlord and Tenant Act 1927 caps a landlord’s damages claim for breach of a repairing covenant at the diminution in value of the landlord’s reversion caused by the disrepair. The cap operates independently of the cost of the works. Where the landlord has already demolished or redeveloped the property, or intends to do so, the cap reduces recoverable damages to nil because the disrepair has not diminished the value of a property that no longer exists in its original form.

Relief from forfeiture is a court order that restores a commercial lease that the landlord has forfeited. A tenant whose lease has been forfeited, whether by peaceful re-entry or by court order, can apply to the County Court for relief. The court restores the lease on conditions, most commonly the payment of all outstanding rent and costs, and the remedying of the breach. An application should be made as soon as possible after the forfeiture.

Yes, a tenant can challenge a rent review by disputing the landlord’s proposed open market rental figure, arguing that the assumptions and disregards in the lease have been applied incorrectly, or contending that comparable lettings evidence supports a lower rent. Most leases provide for the dispute to be referred to an independent expert or arbitrator where the parties cannot agree. We instruct specialist rent review surveyors and manage any referral process.

Dilapidations claims that proceed to negotiation are typically resolved within six to twelve months of the end of the lease. Forfeiture disputes involving a relief application are usually resolved within two to four months if the tenant acts promptly. Contested lease renewal proceedings in the County Court can take twelve to eighteen months from issue to trial. However, the majority of renewals settle before a hearing is required.

Forfeiture is the right of a landlord in England and Wales to bring a commercial lease to an end before the contractual expiry date if the tenant breaches a lease covenant. For breaches other than non-payment of rent, the landlord must first serve a valid notice under section 146 of the Law of Property Act 1925 specifying the breach and requiring remedy.

A landlord who accepts rent after becoming aware of a breach waives the right to forfeit for that breach. A tenant whose lease has been forfeited can apply to the court for relief from forfeiture. The court has broad discretion to restore the lease, usually on conditions requiring payment of all arrears and costs, and the remedying of the breach. A tenant facing forfeiture must act promptly: the longer the application is delayed, the more likely the court is to refuse relief.

Peaceful re-entry of commercial premises is lawful only where the tenant is not in occupation, and the conditions for forfeiture are met. Forfeiture carried out without satisfying the section 146 procedure under the Law of Property Act 1925, or re-entry of premises with a residential occupier present, exposes the landlord to a claim for unlawful eviction and damages. Full details of our service are on our forfeiture and repossession solicitors page.

A contested lease renewal arises when a landlord opposes a business tenant’s right to a new tenancy under the Landlord and Tenant Act 1954. The Act sets out seven grounds of opposition, including the tenant’s failure to repair, persistent delay in paying rent, the availability of suitable alternative accommodation, an intention to demolish or reconstruct the premises, and an intention to occupy the premises for the landlord’s own business.

Where the parties cannot agree on the terms of a new tenancy, either party can apply to the County Court. As section 34 of the Landlord and Tenant Act 1954 provides, the rent payable under a new tenancy is the amount at which the holding might reasonably be expected to be let in the open market by a willing lessor on the terms of the new tenancy. A judge determines any remaining disputed terms by reference to the existing lease and current market practice.

We act for landlords opposing renewal and for tenants seeking to enforce their right to a new tenancy. Further details are on our commercial lease renewal solicitors page.

A rent review dispute arises when a landlord and tenant cannot agree on the rent to be reviewed at the contractual review date. Most commercial leases in England and Wales provide a mechanism for resolution without court proceedings, either by referral to an independent expert or by arbitration under the Arbitration Act 1996. An independent expert applies their own valuation judgment; an arbitrator produces an award enforceable as a court judgment.

The legal issues in a rent review dispute include the correct interpretation of the review clause, the scope of any assumptions and disregards in the lease, the effect of the upward-only cap where applicable, and whether the review has been triggered by a valid notice served within any time limit. We advise on the legal position, instruct specialist rent review surveyors where required, and manage any third-party determination or arbitration proceedings.

Further details of our rent review service are on our rent review solicitors page.

A commercial service charge dispute arises when a tenant challenges the landlord’s right to recover a particular cost through the service charge, or disputes the quantum of the sum demanded. Unlike residential service charges, commercial service charges are not subject to a statutory reasonableness regime. The tenant’s rights depend entirely on the specific wording of the service charge provisions in the lease.

Common disputes include whether expenditure falls within the defined service charge heads, whether the landlord has complied with the lease’s certification requirements, whether the landlord can recover improvement costs rather than repair costs, and whether the tenant’s proportion has been calculated correctly. We review the lease provisions in detail before advising on the merits of any challenge.

The route available for resolving a commercial property dispute in England and Wales depends on the type of dispute and, in most cases, on what the lease provides. The table below sets out the main routes, the disputes each covers, and who decides the outcome.