Property Disputes – Breaches of Covenant
Sector
Commercial Property.
How we helped
This matter was regarding the forfeiture for breaches of covenants other than non-payment of rent by the tenant under two leases of 4 adjoining shop premises. Breaches of covenant include unlawful sub-lettings, unlawful user, alterations without consent. Preparing section 146 notices; drafting and issuing proceedings; attending a site meeting with the tenant and his solicitors; negotiating terms for conditional relief from forfeiture. The tenant failed to comply with the conditions for relief from forfeiture and a possession order was obtained at a hearing in June 2019. That order has been enforced and our client is now receiving rent directly from the sub-tenants. The tenant (who had been in prison) made an application for relief from forfeiture which was successfully opposed.
Value
The financial element of the settlement is approximately £38,000. The combined passing rent under the leases is £31,000 per annum.