Advice needed regarding commercial lease

[dawncbn]

Advice needed regarding commercial lease

Hi, my son has been trading his music business from a commercial building. He has a 6yr lease with a 3yr break clause, he has been trading for 2.5yrs of the lease. All was going well, he has paid all his rent quarterly in advance, but there was a very large outstanding amount for the electricity which is in the landlords name. This outstanding amount was from a previous tenant, but the property had illegal sub-meter's, which the electricity company disconnected. My son tried to set up an electricity account in his own name, which he did and paid several payments. The new electricity company refunded the payments when they realised that there was an illegal sub meter and a new electricty mains supply was needed which the landlord refused to pay for.

My son tried to leave the premises because he couldn't operate his buisness without electricity. The landlord refuses to let him out of the lease even though he had paid his rent up to November of 2010 but he had to stop trading on 19th September. My son has no assets, no debtors other than the landlord. The lease is in a LTD company name. Help, where do we go from here?

 

[jim_price]

I'm not quite clear on the timeline or whether your son has served notice of his intention to exercise the break clause, but in any event unless there are personal guarantees connected to the lease I would suggest that a letter is sent to the landlord, and any other creditors, advising that the company has ceased to trade, has no assets and an application to strike the company from the register will be made shortly. Once the company has gone any issues with the lease will die with it.