Landlords and tenants frequently agree terms verbally rather than having a formal written lease. Three recent cases have examined whether or not these oral agreements are enforceable.
These cases have confirmed that to be enforceable, an oral agreement must be:
- for a term of no more than 3 years
- at the best rent reasonably obtainable for the premises
- in possession (ie the term of the lease must begin immediately rather than at some date in the future)
If you have entered into a verbal agreement and are unsure whether you can rely on it then contact me for a free business lease review.
Steve Petty, Commercial Property Solicitor
This blog is not intended to constitute legal advice, nor is it intended to be a complete and authoritative statement of the law, and what we say might be out of date by the time you read it. You should always seek legal advice to confirm whether or how any information in this article applies to your particular situation. We offer a free telephone consultation to discuss your particular circumstances.