Our client, a corporate guarantor for a pharmacy tenant, had served a break notice in 2021 to end their lease early. The response was unexpected. The landlord challenged the validity of that notice, referencing unpaid rent and service charges. In 2023, the lease was forfeited, and the situation escalated when the landlord issued a formal Letter Before Action demanding nearly £400,000 in arrears. The landlord also insisted the guarantor enter into a new lease, with further claims for dilapidations, interest, and legal costs pushing the total exposure beyond £600,000. This is on top of the guarantor facing potential liability for rent until 2031.
The landlord’s actions had placed the guarantor in a precarious position – facing immense emotional pressure, long-term financial obligations for a lease they had not even signed, and the looming threat of litigation that could take years to conclude.
This was a serious and risky situation. It was time to seek specialist legal advice to resolve this complex matter.
Led by Joshua Murphy, our litigation lawyers took swift and strategic action to protect our client’s interests. We focussed on three areas:
Challenging the enforceability of the new lease clause and the landlord’s rejection of the break notice.
The outcome? These three steps helped shift the focus away from potential costly litigation and toward mediation – a move that saved time, money, and stress.
Through further expert negotiation, we secured a one-off payment from the tenant company that settled all historic claims. Most importantly, our client was released from any future rent liability under the lease.
The final agreement included:
Complex commercial lease disputes can be financially devastating and emotionally draining. According to the Royal Institution of Chartered Surveyors (RICS), dilapidations claims alone can cost businesses tens or even hundreds of thousands of pounds. Bringing in a legal specialist early can prevent costs from spiralling and help businesses avoid lengthy court proceedings altogether.
HM3 Legal’s proactive approach not only protected our client’s financial future but also resolved a highly technical dispute with clarity and finality. The result? This highly favourable settlement meant the business could get on with doing what they do best – running their business without the associated financial and emotional pressures.
If your business is facing any of the situations covered here, do not wait until litigation is looming; have a free, no-obligation conversation with us to explore your options. Our specialist team of litigation solicitors are experienced in resolving complex property and contract disputes through practical, cost-effective solutions including:
Buying and selling businesses, protecting assets and investments.
Settlement agreements, contracts, Employment Tribunal support, disciplinary and discrimination.
Buying and selling property and land, lease negotiations and investments.
For businesses including shareholder disputes, and for individuals such as probate.
If you’ve got a legal enquiry, call us on 01244 318 131 or click here to complete a short form, and a bl**dy brilliant lawyer will be in touch.
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