Commercial leasing disputes make up more than 70% of property litigation work reports Ellisons Solicitors
Rising costs are creating increasing problems for commercial tenants and landlords, according to a leading East Anglian law firm.
Ellisons Solicitors has warned 72% of the work currently carried out by its property litigation team over the last 12 months has been disputes between the two parties.
The warning came as the firm, which has offices throughout Essex and Suffolk, held sell-out interactive events in Bury St Edmunds and Chelmsford to offer vital advice to those struggling to manage their commercial property throughout the region.
Sam Cook, Partner at Ellisons Solicitors, specialises in dealing with a wide variety of landlord and tenant and property related disputes.
Speaking at Bury St Edmunds Rugby Club, he said: “Commercial landlords have faced increasingly challenging times in recent years thanks to the pandemic, and now inflation and measures put in place to curb it are putting further pressure on finances. In difficult times, there is also a greater risk of tenant defaults.”
He added: “Understanding what your options are as a landlord is critical. Knowing how to prepare for, or even avoid, the worst effects of a potential tenant insolvency is even more so. Landlords must plan ahead, and sourcing the right advice and taking the correct actions early on can save landlords a considerable amount of time and money in the long run.”
The session delved into direct money claims, potential claims against guarantors and previous tenants, when and how to use rent deposit deeds, as well as the signs to look out for and how to prepare for a tenant insolvency. Mr Cook stressed it is essential that landlords seek advice early from their legal teams or they risk inadvertently prejudicing their position should their tenant enter an insolvency or restructuring process.
Emma Jenkins, Associate Solicitor, advised commercial agents at the events about various options open to landlords facing difficulties with their tenants. From practical advice when dealing with potential dilapidation claims, to tactical considerations when exercising the right of forfeiture, Miss Jenkins advised that early consideration of options available to commercial landlords to minimise their risk was key.
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