{"id":194268,"date":"2025-08-04T01:46:30","date_gmt":"2025-08-04T00:46:30","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=194268"},"modified":"2025-08-04T01:46:33","modified_gmt":"2025-08-04T00:46:33","slug":"verbal-agreement-commercial-property","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/verbal-agreement-commercial-property\/","title":{"rendered":"Can a Landlord Revoke Verbal Permission for Change of Use in Commercial Property?"},"content":{"rendered":"\n

As a commercial tenant, you may have some concerns about the permitted use of your property and whether this can be modified by agreement<\/a> with the landlord. In some cases, you may have agreed to this verbally, and you are unsure whether this can be enforced. This article covers the validity of a verbal agreement for change of permitted use, and more specifically, whether this can be revoked. <\/p>\n\n\n

\n \"Front\n
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Cheatsheet for UK Leasing Terms<\/div>\n
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This cheatsheet includes practical tips to understand key clauses and avoid disputes in leasing agreements.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

Permitted Use<\/h2>\n\n\n\n

When you sign a lease, you will usually know how you are allowed to use the space and whether it suits your business. The lease will typically include a \u2018Permitted Use\u2019 clause that outlines a narrow, specific use for the property. An example of this would be \u201cuse as a caf\u00e9 for the sale of hot and cold food and beverages\u201d.\u00a0<\/p>\n\n\n\n

You should note that this is different from the Use Class<\/a> of the premises, which is set by the local authority and can usually only be changed by planning permission. For example, if you are running a small cafe, you will typically need premises with Use Class E. This means that, at the council level, the property can be used for this type of business. Changes within a use class usually will not require a change of use application.\u00a0<\/p>\n\n\n\n

The \u2018Permitted Use\u2019 clause may mention this use class too. If you ask the landlord to approve a change of use, it only affects the Permitted Use clause \u2014 not the Use Class.<\/p>\n\n\n\n

The Agreement<\/h2>\n\n\n\n

Verbal agreements can be legally binding, but they are more complicated to prove and often more difficult to enforce if a dispute arises. It is always preferable to get things in writing, particularly when dealing with commercial property. A lease will ordinarily try to exclude variations to the lease which are made verbally, but often, landlords will not follow the lease processes and instead insist on trusting their word. In these situations, verbal permission is not automatically void for a change of use.\u00a0\u00a0<\/p>\n\n\n\n

You should always try to document any verbal agreement made with the landlord in writing. For example, you could send them an email confirming the discussion and agreement. <\/p>\n\n\n\n

If you invest or make changes based on permission, the landlord may be legally prevented from withdrawing that permission later. This legal concept is called \u201cestopped\u201d, and it can prevent the landlord from going back on their word.<\/p>\n\n\n\n

This is especially true if revoking the permission would cause you substantial financial loss.<\/p>\n\n\n\n

You should note, however, that most commercial property transactions will involve solicitors. You and the landlord can agree on specific wording for a new \u2018Permitted Use\u2019 clause after a verbal agreement.
Keep a written record of the agreement to ensure both parties fulfil their commitments.<\/p>\n\n\n\n

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Remember, most agreements with commercial agents or in the Heads of Terms are not binding unless included in the final lease.<\/p>\n<\/div>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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