Welham Green, Hertfordshire
Our client was faced with an awkward position at the lease end of their property at Welham Green, Hertfordshire, whereby the tenants had generally underperformed and significant rent arrears had been allowed to accrue. Maintenance had also been missed and the building was beginning to fall into disrepair in places. At the same time they were concerned about a potentially deteriorating market in the (then) run up to Brexit and didn’t want to face a long period of vacancy which would reduce any chance of recovering arrears.
We were instructed and recommended appropriate solicitors. A strategy was developed based on serving a hostile Section 25 Notice to remove the 54 Act protection on the grounds of non-payment of rent and disrepair. Prior to serving the Section 25 Notice a meeting was held with the tenants to explore whether or not they were going to be able to afford anything like a market rent or whether they really ought to move on. They insisted that they could continue.
After some negotiation, terms were agreed including approximately a 50% increase in the rent with landlord break clauses in the event of non-payment of rent or disrepair not being addressed. Our building surveyors also agreed a schedule of works were to be carried out. The tenants’ solicitors repeatedly attempted to renegotiate terms, however, were dealt with firmly under the threat of the tenants being evicted if the lease was not completed by the lease termination date stated on the Section 25 Notice. The lease completed with approximately two weeks to go and repair works have now been carried out.
For further information, contact Mark Bunting, Regional Director, on 01727 843 232 or via email to mark.bunting@argroup.co.uk.