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forced to stop trading - can't pay the rent any more

Discussion in 'Legal' started by autt86, Nov 26, 2010.

  1. autt86

    autt86 UKBF Newcomer Free Member

    Posts: 6 Likes: 0
    I have a commercial lease for a retail business, for which the rent is overdue by 10 weeks. I can't pay the rent any more. This is a fixed comemercial lease for 15 years, with 9 still remaining.

    I am closing down because the landlord won’t allow me to sell in direct competition with the other business so it has forced me to stop trading. This is after planning permission had been rejected by the council to open a hot food takeaway.
    Am I still liable to pay the rent for the renaming 9 years even if the landlord had forced me to stop trading?

    Any help would be appreciated
    Posted: Nov 26, 2010 By: autt86 Member since: Nov 26, 2010
  2. daniel.benson

    daniel.benson UKBF Enthusiast Full Member - Verified Business

    Posts: 618 Likes: 112
    Is it in your lease that you cannot sell in direct competition with the other business???
    Posted: Nov 26, 2010 By: daniel.benson Member since: Nov 16, 2010
  3. autt86

    autt86 UKBF Newcomer Free Member

    Posts: 6 Likes: 0
    This is how I got into this mess.
    It was a new lease for 15 years, and with 9 still reaming.
    The lease states that it doesn’t have planning permission for use of a hot food takeaway which I am aware of, the landlord had agreed for me to put forward a planning application. The plan was to open the business as a takeaway.

    Pervious tenant had already put forward a planning application for use of a hot food takeaway and was rejected by the council.
    I wasn’t aware of this matter before I signed the lease, surely the landlord should had declare this information to myself before I signed the leass?

    Planning application was rejected ( no surprise ) and my plans for the business was down the drain. During the planning application timeframe I decided to open up as green grousers, this had help me pay the rent and bills.

    The landlord had sent me a letter asking me to stop trading as this was a breach of the lease because of direct competition with the other adjoining premises in which he owes too.

    At the end of the day, I was mislead to sign a lease that he didn’t disclose all the information about pervious planning application, planning application rejected and cant even trade because of competition rules.

    I had paid rent for 6 years, I am at a point where I can not afforded to pay anymore, I am jobless
    Posted: Nov 28, 2010 By: autt86 Member since: Nov 26, 2010
  4. kulture

    kulture UKBF Legend Staff Member

    Posts: 7,239 Likes: 1,960
    Have I got this right. SIX YEARS AGO you signed a lease, hoping to trade as hot takeaway. You did not check with the council first regarding getting planing permission, you did not have any break clauses in the lease, and it has clauses in the lease allowing the landlord to tell you not to trade in competition with local shops.

    Is this what you are saying?

    If you used a solicitor, sue him.

    If you did not use a solicitor, then you brought this on yourself.

    Have you tried subletting, or is there another clause prohibiting that too?

    What have you been doing for the last six years?
    Posted: Nov 28, 2010 By: kulture Member since: Aug 11, 2007
  5. Richie N

    Richie N UKBF Big Shot Free Member

    Posts: 4,040 Likes: 483
    Your post is a tad confusing unless its just me at 1am but what did you do in the shop for the last 6 years?
    Posted: Nov 28, 2010 By: Richie N Member since: Nov 1, 2006
  6. oldeagleeye

    oldeagleeye UKBF Newcomer Free Member

    Posts: 3,988 Likes: 1,220
    The short answer OP is yes you are still liable for the rent and you have no-one else to blame but yourself. You can't just chop and change the use of a retail premises because you think that you see a better opportunity especially if takes tradeaway from another local shopkeeper who like you signed a lease that gave some potection on what trades were allowed regardless of planning consent.

    Your get no sympathy from me then as far as this situation is concerned. Far from it. I applaud the landlord for ensuring fair play between all his tenants and that could in fact be your salvation.

    You going bankrupt is not going to pay the rent so we have on the face of it an empty shop presumeably on a parade where the freeholds are owned by the same landlord. Talk to the guy then and the other shopkeepers about what the shop could be used for.

    If you can come up with an idea where planning consent would be OK or wouldn't be needed and can pull in more local trade to the beenfit of you all then they might all rally round.

    I know I and half a dozen other retailers did in a similar situation many years ago. In fact some helped with redecorating the shop. Others with a soft loan cash loan for stock and the great butcher and greengrocer we had in out little community donated 3 months of food for the chaps freezer so he needn't worry about food for the wife and kids for a while.

    I for one then hate this antagonistic world we now live in where when things go wrong the first thing many people seem to do is say to themselves they know its their fault things went wrong - but what can they sue for.

    Posted: Nov 28, 2010 By: oldeagleeye Member since: Jul 16, 2008
  7. Cobby

    Cobby UKBF Ace Free Member

    Posts: 2,789 Likes: 565
    Your OP is quite vague. It sounds like you have recently taken on a lease that has 9 years remaining and the previous lesee is the one that attempted planning permission which was subsequently rejected. Is that the case?

    Despite the usual Daily Mail-esque rantings of the previous poster, you may have some recourse against whoever sold you the lease but there are a lot of factors against you so don't count on it.

    Go and see a solicitor, the worst case scenario is that you may have to go bankrupt as a result of not doing your research, best case scenario is the money you spend on a solicitor gets you out of the lease.

    Try reading some older threads that deal with mis-sold and misrepresented leases.
    Posted: Nov 28, 2010 By: Cobby Member since: Oct 28, 2009
  8. oldeagleeye

    oldeagleeye UKBF Newcomer Free Member

    Posts: 3,988 Likes: 1,220
    Blobby. Your on my back again and how do you accuse me of rantings.

    I repeat then what I have time and time before. Before you give any further so called advice if you want to be taken seriously please let us know how old you are. What business experience you have and in what sectors.

    You have repeatedly refused to answer these questions and I might add I have received PM's from people that know you well embarrsased about your keyboard warrrior and wind up tactics.

    Lets have that info then or shut up because at the moment you do not have any credibilty whatsoever in this forum where I do and if you continue to try to undermine that credibility I will insist the moderators ban you. Now grow up and give us that info.

    Posted: Nov 28, 2010 By: oldeagleeye Member since: Jul 16, 2008