Assessment of the indemnity
Assessment of the two main components: principal indemnity (value of the business or replacement indemnity), ancillary indemnities (removal, relocation costs, sundry costs).
→ Real Estate · Sub-expertise
The eviction indemnity is owed by the landlord who refuses to renew a commercial lease without serious and legitimate grounds: its amount can represent several years of the business's turnover. We support landlords and tenants in the calibration, negotiation and litigation of the eviction indemnity.
→ What we cover
Assessment of the two main components: principal indemnity (value of the business or replacement indemnity), ancillary indemnities (removal, relocation costs, sundry costs).
Mastery of the methods (multiples of turnover or of EBITDA depending on the sector, replacement value), arbitration according to the context (transfer or loss of the business).
Identification of the grounds exonerating the landlord from the indemnity (serious breaches by the tenant, grounds specific to the landlord provided for by law), demonstration or contestation.
Amicable negotiation of the indemnity in the context of the notice to quit or during renewal, formalisation through a settlement protocol.
Representation before the judicial court, management of the court-appointed expert assessment (methods, scope, adversarial process), submissions on the final amount.
Articulation with the related mechanisms: the landlord's right of recantation (withdrawal of the refusal to renew), the tenant's right to hold over until effective payment.
→ Our approach
01
Analysis of the situation (lease, business, grounds for refusal), preliminary assessment of the indemnity, choice of strategy (negotiation or litigation).
02
Notification of the notice to quit with or without an offer of indemnity, or renewal request with contestation of the refusal, precise timetable.
03
Amicable negotiation on the basis of adversarial valuations, or appointment of a court-appointed expert to assess the indemnity.
04
Submissions and oral argument on the final amount, enforcement of the decision, payment and surrender of the premises.
→ Who we help
Advice to a landlord wishing to refuse renewal in order to rebuild the building: analysis of the option (with or without indemnity), calibration of the indemnity, procedural securing.
Representation of a tenant whose lease is not renewed without valid grounds: demonstration of the loss, valuation of the business, negotiation or litigation.
Argument by a landlord invoking serious and legitimate grounds (repeated breaches by the tenant, failure to maintain) to refuse renewal without indemnity.
Management of a court-appointed valuation assessment: choice of methods (turnover multiples, value of the leasehold right), representations in response, defence of the amount adopted.
→ Q&A
Where the landlord refuses to renew the commercial lease without serious and legitimate grounds on expiry. It is intended to compensate the loss of the evicted tenant. If the landlord refuses on serious grounds (breaches by the tenant), no indemnity is owed.
Made up of the principal indemnity (value of the business if the loss is total, replacement indemnity if relocation is possible) and the ancillary indemnities (removal costs, relocation costs, transfer duties, etc.). The calculation requires an expert assessment of the business.
Serious and repeated breaches by the tenant (failure to pay, failure to operate, irregular subletting, unauthorised change of use), provided they were notified and persisted despite a formal notice. The burden of proof falls on the landlord.
Yes, until effective payment of the eviction indemnity (right to hold over). The landlord may also exercise its right of recantation (withdraw the refusal to renew) as long as the tenant has not entered into a new lease elsewhere or recovered its business.
→ Go further
Let's talk. We respond within one business day to qualify your transaction and direct you to the firm's most suitable lawyer.
Get in touch→