Mixed Use Property Legal Status

Mixed Use Property Legal Status

7:50 AM, 20th June 2015, About 7 years ago 6

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I purchased a mixed use property (residential flat upstairs and a hairdressers downstairs) at auction. The deposit held was passed to me by the vendor as part of the exchange. I inherited an existing commercial lease which leases the whole property to the two tenants. Mixed Use Property Legal Status


  1. Do I need to register the deposit with a regulated body even though it has not been registered previously?
  2. The lease states that if the rent is more than 14 days late the “landlord may re-enter the premises and thereupon the Term is to cease absolutely but without prejudice to any rights or remedies that may have accrued to the Landlord against the Tenant or the Guarantor in respect of any breach of covenant or other term of the lease, including the breach in respect of which the re-entry is made”. Does this clause allow me to take back the property without any legal notices?

Any comments greatly appreciated.



Mark Alexander - Founder of Property118 View Profile

7:59 AM, 20th June 2015, About 7 years ago

Hi Mike

This all sounds very dodgy to me.

Firstly, you solicitor should have advised you on the lease before you committed to the purchase. If he had done so then you wouldn't be needing to ask these questions. If your solicitors negligence results in financial damage to you then you may well have a valid claim against his/her professional indemnity insurance. See >>> http://www.property118.com/member/?id=1945

Without reading the lease fully (which I don't have the time to do) it would be impossible to advise you fully. However, from what you have said it appears to me the whole property is leased to one tenant and that tenant sublets the residential elements. If that is the case though, why was the vendor holding deposits for the residential sub-tenants of the lessee of the whole building.

The wording from the lease that you have quoted in your second question seems to be to be illegal. It makes me wonder about the validity and enforceability of the rest of the lease too.

I'm sorry but it just isn't really making any sense at the moment and I really do think you should pay for some independent legal advice from Counsel before you run into deep water.

MJC 999

19:25 PM, 22nd June 2015, About 7 years ago


Thank you for your response.

I bought the property at auction and only consulted my solicitor after I had purchased it.

The whole property is let to two tenants. The lease is in the name of both tenants and they share equal responsibility. They then sublet the residential flat and run the hairdresser's themselves by employing staff.

The deposit I was passed was for the whole building not just the residential segment.

The clause I quoted related to the whole of the property as effectively the sublet of the residential part is not permitted by the lease and is effectively outside of the present lease.


Mark Alexander - Founder of Property118 View Profile

22:36 PM, 22nd June 2015, About 7 years ago

Reply to the comment left by "MJC 999" at "22/06/2015 - 19:25":

That's a messy one but at least you are not responsible for protecting any deposit paid by the sub tenant.

You need professional help to deal with this, you can't evict the sub tenant, you need to commence litigation against your tenant.

MJC 999

18:55 PM, 23rd June 2015, About 7 years ago

Any suggestions of where to turn for legal advice in mixed use case like this?

Thanks Mike

Mark Alexander - Founder of Property118 View Profile

19:01 PM, 23rd June 2015, About 7 years ago

Reply to the comment left by "MJC 999" at "23/06/2015 - 18:55":

Paul Shamplina at Landlord Action or Tessa Shepperson at Landlord Law

MJC 999

19:03 PM, 23rd June 2015, About 7 years ago

Thanks Mark

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