lease extension

[nashworth]

For a lease extension a person must have been a qualifying tenant for 2 years on a long lease and not be a business/commercial tenant.

What is the definition of a business or commercial tenant?

My client owns 3 lodges and wishes to extend their leases. He qualifies under the 2 year rule and long lease rule. However he frequently rents out the lodges and this provides him with a great deal of income. However this is not his business just a side line.

~Is he a business/commercial tenant?

[redcrx]

sounds like he is to me. or is he living permanently in all 3 properties?

[nashworth]

he takes it in turns to stay in each property during the year. But i doubt this would class as occupation.

[redcrx]

hes renting out the properties for an extra income. To me this sounds just like a business.

you could ask the freeholder if they are willing to increase the lease term.

[nashworth]

i think the problem is the freeholder wants to locate the lodge and although there is nothing specifically in the lease saying he can there is nothing in it saying he cant either.

[tamborine]

he is 'sub-letting'. business/commercial means running a commercial business from the property as opposed to just living in it.

[nashworth]

so if he is just subletting and not actually using the premises to run a business from then this is ok? it is still a qualifying lease and he a qualifying tenant?