- Original Poster
- #1
Hi, I'm looking for some advice regarding my pub tenancy agreement, three years ago I entered into a partnership with two others. Things haven't gone great and they have decided when the three year tenancy is up in March they will apply for it on their own and I can apply independently too which we've agreed to do. I've recently been looking through my tenancy agreement, the agreement is with my company signed as a executed as deed by three directors which we've all signed, the thing is that I am and have always been sole director and secretary of the company since the start. When we started I was asked to personally secure the loan for the fixtures and fixings and the other two are guarantors, I asked if I can sign on behalf of the company, I was told we don't offer loans to the company it has to be signed by the company director personally. We've paid down a large part of the initial loan which is great as it was for 50k. We had some additional investment of 27k done two years ago but the signing off of which hasn't happened yet probably as they weren't aware of problems between the tenants and no rush to have it done as everything seemed fine between us, I was also unaware we were having problems and was surprised by the decision. When the bounce back loans became available they contacted me asking me to apply for it suggesting we pay our own investment of 20k back and using the rest to support the business, I refused as it wouldn't be right or legal, I told them I'm happy to apply for the loan to support the business but not to pay us back our investment. Two weeks later I received an email saying our partnership would end. I now find myself in the position that I'm being asked to sign the new loan agreement with the additional 27k and personally secure it without the security of having the income to do so if I don't secure the new tenancy. My partner isn't on the tenancy and we have assets in equity of 200k in two properties including our home, we also have 10k in savings.
The situation has taken another twist as we're now facing further lockdown and the government have offered support in grants which we're in the highest rateable value for so will receive the maximum grant which unfortunately excluded us from the grants for the same reason the last time around and there's furlough for staff wages if we're forced to lockdown again. This along with the 50k bounce back loan that I did apply for a month after I received the email which is sat in the bank account awaiting the opportunity to support the business when and if needed which looks likely soon. They are unaware I applied for it, I haven't told them as they would be pressurising me about it, they don't have access to the bank account as when I was asked to be company director I told them I would make sure everyone's paid which I have done, which wasn't the case with previous tenants. I've been managing the pub for 24 years.
Sorry for the long post, the questions I have and am seeking advice for is:
If the three of us are on the tenancy agreement as directors of my company and they are not, never have been or ever will be directors of my company what are the implications of this and their validity on the agreement?
If their validity is nothing to do with their position as directors on the agreement and they are equal tenants on the agreement are they not then equally responsible for personally signing the new credit agreement?
This all seems a bit odd, they have recently signed for two new pubs with the same pubco which puts them in quite a strong position with them although neither of them are on site running the place unlike myself, their history for one of them with pubs has been a disaster and the other one unproven, our turnover is 800k and grew 35% in the last year before lockdown. I don't want to appear uncooperative in signing the loan agreement but would it appear unreasonable to ask for a decision on who gets the tenancy before it's signed and the new valuation, the new tenancy and the loan agreement signed for on the same day?
Thanks for any advice offered.
The situation has taken another twist as we're now facing further lockdown and the government have offered support in grants which we're in the highest rateable value for so will receive the maximum grant which unfortunately excluded us from the grants for the same reason the last time around and there's furlough for staff wages if we're forced to lockdown again. This along with the 50k bounce back loan that I did apply for a month after I received the email which is sat in the bank account awaiting the opportunity to support the business when and if needed which looks likely soon. They are unaware I applied for it, I haven't told them as they would be pressurising me about it, they don't have access to the bank account as when I was asked to be company director I told them I would make sure everyone's paid which I have done, which wasn't the case with previous tenants. I've been managing the pub for 24 years.
Sorry for the long post, the questions I have and am seeking advice for is:
If the three of us are on the tenancy agreement as directors of my company and they are not, never have been or ever will be directors of my company what are the implications of this and their validity on the agreement?
If their validity is nothing to do with their position as directors on the agreement and they are equal tenants on the agreement are they not then equally responsible for personally signing the new credit agreement?
This all seems a bit odd, they have recently signed for two new pubs with the same pubco which puts them in quite a strong position with them although neither of them are on site running the place unlike myself, their history for one of them with pubs has been a disaster and the other one unproven, our turnover is 800k and grew 35% in the last year before lockdown. I don't want to appear uncooperative in signing the loan agreement but would it appear unreasonable to ask for a decision on who gets the tenancy before it's signed and the new valuation, the new tenancy and the loan agreement signed for on the same day?
Thanks for any advice offered.
