A few years ago my husband took on a tenancy with Punch Taverns and I think I signed as a guarantor - I can't really remember the details of what I signed because we weren't given a copy and I wasn't worried at the time, I certainly didn't think he'd lose money - I know i was stupid but he was so keen to get his own business. Anyway things went OK with the business for a while and after a few months of pressure from our BDM he agreed to take the pub on a lease so that they would do a much needed refit. I didn't agree with him taking on the lease so I wouldn't have signed anything else at this point. After the lease was signed with the huge increase in rents the business started losing money - he worked hard to make it work and stuck it out until he could no longer pay for the stock and in 2005 he surrendered the lease owing Punch around £12000 and having various debts to other creditors totalling around £20000. We've been struggling to pay them all since then but our financial situation has since got worse. He recently tried to arrange an IVA but Punch refused it. Now we are thinking that bankruptcy is his only option but I'm worried that Punch will come to me for the debt. If i signed as guarantor at the beginning of his tenancy would i be liable for debts incurred on the lease? Thanks for any advice.
I agee with Julian that if you signed as a guarantor then you will be liable for that lease.
However, Suzybabyuk has a point too. You seem to say that your husband took another lease for a revamped pub one where you did not sign a guarantee.
My advice is to look at the latest lease next to the old one. You may find the new lease supercedes the old one. However, there is a chance it may not.
let us know what you find :-)
Edited by - Integrity on 08 December 2008 17:56:22
Yes Integrity, he originally had a tenancy agreement - which is when I think I signed a guarantee. I don't have a copy of this agreement anymore. Then he later signed a lease agreement - which I still have, I know I didn't sign at that time. If I was a guarantor for the lease would it be written into the lease agreement? I assume the tenancy agreement ceased to be valid when he signed the lease. I am worried that I just signed to guarantee him for any debts racked up with Punch though - could I have done that?
I will check the lease but if it isn't mentionned is there anyway I can find out for sure before he decides whether to go ahead with bankruptcy. Thanks again for your help.
Generally speaking a tenancy agreement is about the rent. Not any of the stock. It is unlikely that you will be held liable for the other debts (other than the rent). But the new lease agreement looks like a new "rent" agreement.
Might be a guarantor -pub lease
Posted - 08 December 2008 : 17:06:14
