Lease advice needed

[pikachooo]

Hi, 6 years ago we were assigned a lease from the leaseholder for a shop. Basically shop ran into difficulties and is no longer trading and lease still has 8 years to run. We currently owe March and June rent. We met with landlord and leaseholder today expecting lease to be forfeited and keys handed back as per landlords instructions only to find that he now won't let us forfeit the lease and won't accept keys back. Landlord seems to think it's between us and leaseholder now and leaseholder is saying that we've got to find a new tenant and continue paying rent until we find one and that it shouldn't be down to him to find someone. This is turning into a nightmare that simply won't end.
We would really appreciate any advice on this. Many thanks

 

[kulture]

Go see a solicitor. It is all down to what is in the lease and what is in the assignment documents. Did you sign as a Ltd Company or as an individual? If you signed as a ltd company, did you also provide a personal guarantee. Did you use a solicitor what you signed 6 years ago, and if so did he advise you on the risks you were taking on?

There are many many more questions that arise. The level of detail is such that it would be better to see a commercial solicitor. At best you can hand back the keys and walk away, or you can close the ltd company and walk away. At worst you can be bankrupt.

 

[pikachooo]

Thanks kulture, we signed as a partnership not ltd company. We're seeing a solicitor next week but thought I'd ask here first to try and put mind at rest a bit.

 

[deniser]

Are you sure you took an assignment and not a sublease? Otherwise I don't understand why the previous leaseholder is still involved in your discussions with the landlord?

 

[Check-A-Contract]

Search for 'contract review service' - there are companies where you can send your contract to and get initial advice where you stand.

 

[Diane@JFS]

Without sight of the lease agreement, we are unable to provide any accurate advice. There may be a clause within the agreement that details forfeiture on becoming insolvent. However, this often applies to companies rather than partnerships. In terms of generic advice, you have entered into a contract for a specified number of years. If you wish to end the lease early then you will either need to pay the landlord the amounts for the remining time left on the lease or alternatively find a replacement tenant so that the landlord does not suffer any losses.

Seeking advice from your Solicitor will be the best course of action as they will be able to review the lease in full. I would not recommend providing confidential documents to a 'contract review service' as these firms are often unregulated.

Joseph Frasier Solicitors