ltd with lease what to do

[stone]

Hi

Am here hoping someone can advise me with a problem. I am director of a very small ltd co working from retail premises. I am currently 18mths through a 3yr lease on which my landlord holds 3mths security plus month in advance (700/mth)
Having wotked hard to get the business going promises about the area we are on have not been kept and i find i am personaly supporting the company due to lack of custom. ( there is no question as to the business thriving at a better location) For some time I have looked for other premises and think I might have found what I am looking for, The problem I have is the 18mths left on my lease.
At the moment I am able to cover all outstanding accounts after a short profitable period we just had so am not in debt. If I continue for say another 3 months I will find myself getting in debt with supliers to make my lease payments.

Thats how it is, can someone please advise as to my options and possible consequences.

Thanks in advance

Stone

 

[Toon]

Lucky you - I am about 11 months through a 3 year lease but have no ge-out clause I wanted to move into a bigger house by putting the money I spend on the unit into a mortgage. Guess I have to stay here for another 2 years :cry:

 

[quintain]

Hi

You will need to negotiate with your landlord or find another tenant to assign the lease to. More than likely the latter.

Kind regards

Pauline
Quintain Limited
Corporate Consultancy| Company Secretaryship | Compliance | Corporate Governance

 

[stone]

By assign it presumably this would mean selling the lease ? If this is correct them how would I do this ?

stone

 

[The Resolver]

If you have any reason to complain as to whether the landlord has carried out fully his obligations then maybe you can negotiate.I have just obtained a 12 month rent free period for my son who rents a shop inside a shopping centre. The footfall has been very poor. The landlords rejected advice from the managing agents as to what steps to take to increase the footfall.We argued a breach and also that their handling of other units blighted the floor on which my son had his shop. Is thsi relevant to you? You mention promises being broken.Were they from the landlords or theri agents?

Even in the absence of any possible breach by the landlord, you might still be able to negotiate an early release. Some deal may be better for the landlord than forcing a tenant into financial difficulties and possible bankruptcy.

 

[stone]

The area I am on along with 7 others was a new retail area which was talked up by the landlord as going to be the next comming. While i had reservations about it being an out and out success the very least I expected was a footfall average of 5 per week. For a time this was happening but some mad things were done such as naming the site a shopping centre rather than a retail park has regretably seen us passed by. The larger of the 7 who had been here for 2+ yrs went into liquidation some weeks ago. It isnt going to improve ! While financial difficulties are not what I want there is no money or assets as it was set up as a middle man outlet. Nothing at all to have.

The main problem is promisses were spoken not written so difficult to pursue, eg there would be no dual trading on the site, this was broken within 6 months when another retailer selling the same goods as myself was moved in.

stone

 

[shopfrontuk]

ask the landlord if you can sublease it. that way you can rent it to someone else and it keeps the landlord happy as they still get there money.

 

[quintain]

Yes - either your estate agent, the landlord or yourself will need to find someone else to take over the lease.

Kind regards

Pauline
Quintain Limited
Corporate Consultancy| Company Secretaryship | Compliance | Corporate Governance

 

[Antonia @limeone.com]

You need to start talking to your landlord about the remaining term and also asking him about his agreement to sub let for the remaining term. You should take some legal advice on the problems and promises aspect but agreed that if they were all comments you will have issues. Have another look at all the paperwork particularly the marketing stuff at the time you moved in. If that mentions restrictions on the same sorts of business type then that can be used as a lever now.

If you want to discuss further let me know,

Antonia