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bonechild
New Member
50 Posts |
 Posted - 08 April 2011 : 15:50:38
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Hi All
I have recently stopped my business as a sole trader and left my business premises. I put it to the landlord that if he just keeps the deposit I gave him then we are all square and he could let me walk away from the lease. I told him that I have no business assets and no personal assets and that if he didn't release me from the lease he would be forcing me into BR.
I have heard back today that even though it only has just over a year to run he has refuse to let me surrender the lease. I dont know the exact amount of my debt (or what it is going to be) to him or to the council for business rates as yet so how do i declare BR?
Also their letter states I am stil responsible for the property. If my petition for BR is granted does this mean the landlord has to take back the lease?
I know some answers would advise me to get a solicitor but believe me that is out of the question and paying fr food is a major worry at the moment let alone solicitors bills so any help from the experts or anyone else who has been through this would be very welcome.
cheers
Bone |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 08 April 2011 : 23:57:11
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Hi,
in relation to commercial leases, there is usually in the lease a forfeiture clause that allows the landlord to re-enter the premises and do with it as they wish,including the creation of a new lease.
In all the cases I dealt with involving commercial leases, the landlord sought to create a new lease as soon as possible, so as to realise rent etc from it.
I take it that there is no value in the lease?
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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bonechild
New Member
50 Posts |
Posted - 09 April 2011 : 22:54:08
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Hi BigAl
Sorry to be thick....Wha does it mean about 'no value in the lease'? |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 09 April 2011 : 23:59:29
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Hi,
basically the same as a house, what is the difference between the loan that you paid for the lease and the value of the lease itself, i.e. does it have equity(value) or no value(neg equity)
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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bonechild
New Member
50 Posts |
Posted - 10 April 2011 : 10:42:10
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Thanks. I'm still confused but I guess the answer is no.
Basically, I rented a room. I paid a 3 month deposit and paid a monthly rent and service charge. The lease was for 10 years from july 2009 but had a break clause in july 2012. That's all I know.
Does this have anything to do with value?? How does all this effect my original question about what happens to it when I start BR.
The landlords agents have said he doesn't accept the lease back. They know that I have said that if he doesn't I am forced into BR but that makes no difference.
In my mind it would make sense for them to release me and try to relet asap (its in A LOT better state than when I took it)but it seems they want to be awkward. But surely that means they wont get anything from me when they could potentially ge revenue from renting to someone else? Or am I wrong about this?
So, do they have to accept surrender, or take back the lease, or however its termed, when you petition for BR? |
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debtinfo
forum expert
2826 Posts |
Posted - 10 April 2011 : 10:59:21
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ok, as part of the lease you have the right to occupy the premesis for a period of time. this can be valueble sometimes, for instance if you had a 10 year lease on regent street in londen with thousands of customers walking past every day then that would be worth a fortune to sell your right to occupy on to someone else. If however you have a shop on a hill in the middle of wales where only i man and a sheep walk past everyday then your right to occupy the premesis is worth nothing, nobody would want to buy it.
When you go bankrupt the OR takes over that right to occupy and can sell it on if their is a value, in your case since you paid very little for the lease at the start it is unlikely to be worth anything.If it is not worth anything then the OR will simply give up the right back to the landlord (a disclaimer) |
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bonechild
New Member
50 Posts |
Posted - 10 April 2011 : 20:01:48
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that sounds good.
would it not cost the landlord more to wait for my BR? Wouldn't he be better trying to find another tennant and earning some rent rather than forcing me to go BR and then not getting anything? |
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debtinfo
forum expert
2826 Posts |
Posted - 10 April 2011 : 20:33:01
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| it might be, but that is their decision, the fact is there is a contract which you are liable for, the money is legally owed, anything else is at the goodwill or not of the landlord. Remember that he does not necessarily know or believe your financial position, how does he know that you dont say have equity in a property which might be sold and shared out in a bankruptcy. Since the position is that the money is owed now from his point of view why should he deteriorate his position by giving up his right to the money. |
Edited by - debtinfo on 10 April 2011 20:33:35 |
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bonechild
New Member
50 Posts |
Posted - 10 April 2011 : 22:33:11
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this is true
Ah well, I'd better start sorting things out for the BR
Do I have to wait to find out how much my debts are? I don't know how much he is going to say I owe him. Then the is the business council tax. If that is not paid can the bailiffs be sent to my house? |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 10 April 2011 : 23:39:45
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Hi,
with CT bailiffs could be involved but this link about them should help as to what they can, and can't do:
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10034289
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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business lease
