Regardless of the nature of your business, a commercial dispute with other parties can be extremely disruptive. Unfortunately, disagreements regarding covenants that impose restrictions on the use of commercial property are on the increase. Due to the complex nature of this area of property law, those who encounter such issues will need the best possible legal advice to gain a full understanding of their rights and obligations, and to reach a favourable resolution as quickly as possible.
The Commercial Conveyancing Solicitors at Wilford Smith have many years of experience acting on behalf of developers, landlords and tenants in disputes involving alleged breaches of covenants. Our team can work on your behalf to resolve any differences by way of negotiation and mediation. If such a resolution is not possible, we have the required skills, knowledge and determination to develop a top-level strategy on your behalf to ensure the best outcome in any litigation. If you have found yourself involved in a dispute regarding a breach of covenant, call us today to find out how we can help.
What is a breach of covenant?
Covenants place restrictions on how property can be used, often being referred to as “restrictive covenants”. When a tenant enters into a contract to lease a property from a landlord, they agree to abide by these restrictions of use. Examples of a breach of covenant include making alterations to a property without the owner's consent, failure to insure the property, using the property for a purpose outside of the agreed terms or licence, failing to pay rent or failing to keep the business open. Developers may encounter restrictive covenants that prevent land being used in certain ways, or for certain purposes. If you are planning to purchase or take out a lease on a commercial property you should employ the services of an experienced commercial conveyancing solicitor so as to be fully aware of any restrictive covenants that may apply to the property.
What happens if a restrictive covenant is breached?
If a tenant breaches a covenant, the landlord may have the right of forfeiture of the lease, meaning that they can terminate the lease early. This will depend on a number of factors, including the type of breach that has occurred, whether this was a “one-off” or is a continuing breach, and whether the breach can be remedied. The landlord's right to terminate the lease will also be affected if they have said or done anything that could be construed as waiving their right of forfeiture. Often, many of the factors surrounding a breach of covenant will be the subject of dispute. By seeking expert legal advice at the earliest possible stage, you will put yourself in the strongest position to ensure that your interests as a landlord or tenant are protected.
If you find yourself in such circumstances, there will be numerous important factors to consider in deciding what is the best course of action. As a landlord, your commercial property serves as a valuable source of income. We can advise on the best legal and strategic methods to ensure that you continue to receive sums due in rent and that the property remains in good repair, as well as in relation to any other matters concerning your property. If you are a tenant, we know how significantly allegations of a breach of covenant can impact upon the day-to-day running of your business. TheCommercial Conveyancing Solicitors at Wilford Smith are able to provide guidance on your rights and obligations should you find yourself involved in such a dispute, and will work to see matters resolved as quickly and smoothly as possible.
Contact our Breach of Covenants Specialists in Sheffield and London
Wilford Smith’sCommercial Conveyancing Solicitors provide clients with a service that is exceptionally strategic and results driven, ensuring that they are given the best possible advice regarding alleged breaches of covenant. With years of experience in commercial conveyancing, we are best placed to advise landlords, tenants and developers in relation to their legal rights and obligations with respect to commercial property transactions.
Our Commercial Conveyancing Teams are based in Sheffield and London, and serve clients throughout England and Wales. Contact us today on 01709 828 044 to find out how we can help.