Below scenario is based on a case recently dealt by the team and thought it would be interesting to explain our thinking and the law around it.
Scenario
The landlord (Happy Time) a commercial company was renting the flat above their shop to a tenant (Ms L) . Happy Time had signed a lease with The Company (TC). Happy Time abandon the property and it is revealed Happy Time’s lease did not permit a sub-tenant. What rights does Ms L have?
Advice
On the assumption that the client’s tenancy agreement with Happy Time is valid it seems it is arguable the legal position is as follows:
First it appears that Happy Time have surrendered their interest in the premises by abandoning the premises. If that is the case then at common law ordinarily the sub tenant (Ms L) becomes the tenant of the freeholder (TC) on the same terms as under the previous tenancy (Mellor v Watkins (1874) LR 9 QB 400 Parker v Jones [1910] 2 KB 32). Therefore Ms L would be the tenant under a statutory periodic assured shorthold tenancy and TC would be her landlord. In some instances statute intervenes as under Housing Act 1988,s.18 but this does not apply in this case as Happy Times was not permitted to sub-let under the lease.
Ms L therefore retains her rights and the only way to evict her would be to serve a valid notice and follow the correct court procedure.
