Surrendering a commercial lease early HELP please desperate

[Sarah Cole]

Hi all we took a property on and our break clause is not till next year but we have been in trouble for a while , I have spoken to the organisation whom let us the property they are very formal and legal we are just a sole trader,
Finally after my begging and the fact I had to borrow rent from my retired skint father in law last month they have agreed to discuss us surrendering but it’s just as bad as us staying in the property, the legal fees and everything they want us to pay is near to 4K plus to keep our 2k deposit staying i. The property would only cost near 8k ,
Either way we can afford neither we do not own our own property nor our own car, we have not a penny in the bank nor any savings and maxed out on credit cards I have been messaging them for months advising of our struggles ,
I just do not know what to do we can’t afford to stay or go so it seems I feel so I’ll the stress it’s all caused me going to have to go to doctors as I’m loosing hair I just can’t cope please help!!
Excuse my grammar I’m dyslexic hope you can understand

 

[Gyumri]

we took a property on and our break clause is not till next year

What does "we" mean? Is the lease between a landlord and your Ltd company or you and your friend personally in your own names?

If the former and the Ltd company has no assets and you've given no personal guarantees for the rent then where's the worry if the landlord takes the premises back ie you surrender the lease?

 

[fisicx]

Opening post says they are a sole trader.

 

[fisicx]

@Sarah Cole, welcome to UKBF. Sorry to hear of your troubles and there isn’t any good advice I can give you but Graham @The Resolver should be able to help

 

[MBE2017]

I would recommend having a talk with your accountant and also get your solicitor to check the lease out as well.

End of the day whilst the landlord is probably within their rights to pursue you, without any reasonable assets to your name, they will probably conclude it will be throwing good money after bad. You will probably lose your deposit, but it sounds like your venture has, for whatever reason reached the end of the road.

Hard to say much more on limited info, hope you get decent advice. Best of luck.

 

[WaveJumper]

Sorry to hear about your troubles and as pointed out above you are in a bit of a rock and a hard place at the moment. I would first sit down take a deep breath and write down all the numbers, staying, going etc etc so you have an absolute clear idea which is the less stressful option on your finances.

I would arrange a meeting with landlord or their agents layout exactly where you are financially, options include going early but negotiating much reduced legal fees, you could negotiate paying a much smaller rent (better for the landlord to have someone in than empty) if you don't already ask to pay monthly (but make sure you do and don't get behind) If the property incurred business rates you could even offer to stay and just cover those costs giving them the chance to find a new tenant.

The landlord may play hard ball but in the end there's no use them pursuing someone who has no money (did you give any personal guarantees)

 

[kulture]

Sorry to hear about your troubles and as pointed out above you are in a bit of a rock and a hard place at the moment. I would first sit down take a deep breath and write down all the numbers, staying, going etc etc so you have an absolute clear idea which is the less stressful option on your finances.

I would arrange a meeting with landlord or their agents layout exactly where you are financially, options include going early but negotiating much reduced legal fees, you could negotiate paying a much smaller rent (better for the landlord to have someone in than empty) if you don't already ask to pay monthly (but make sure you do and don't get behind) If the property incurred business rates you could even offer to stay and just cover those costs giving them the chance to find a new tenant.

The landlord may play hard ball but in the end there's no use them pursuing someone who has no money (did you give any personal guarantees)

and you were doing so well with your excellent answer. You missed the sole trader bit. So the lease is in their name.

 

[The Byre]

they are very formal and legal we are just a sole trader,

An individual may be sympathetic to your plight, but companies and organisations have strict structures and the individual, if they want to keep their job, has to stick to those structures.

Either way we can afford neither we do not own our own property nor our own car, we have not a penny in the bank nor any savings and maxed out on credit cards I have been messaging them for months advising of our struggles ,

"Dear Mr. Landlord, I do not have any money. The business has crashed as a result of the C19 crisis and subsequent lockdowns and I am surrendering the lease with immediate effect. I shall be having to declare myself to be bankrupt. Love and kisses, Sarah."

Process - https://www.gov.uk/government/publications/guide-to-bankruptcy/guide-to-bankruptcy

That way, they know that there is no money to be had and chasing you would be a 'fool's errand'.

I just do not know what to do we can’t afford to stay or go so it seems I feel so I’ll the stress it’s all caused me going to have to go to doctors as I’m loosing hair I just can’t cope please help!!
Excuse my grammar I’m dyslexic hope you can understand

Deep breath - relax - go through the steps and deal with the situation, one small step at a time.

Like all things, this too will pass. Or as HG Wells put it, "The crisis of today is the joke of tomorrow!"

(And use a spelling checker!)

 

[MOIC]

To add to the above, make sure all your products are out the shop first and return all the shop keys in the envelope.

 

[WaveJumper]

and you were doing so well with your excellent answer. You missed the sole trader bit. So the lease is in their name.

I will put that down to the heat wave

 

[Lisa Thomas]

Please can you clarify what you mean by 'we' as you have said you are a sole trader but have referred to 'we' on multiple occasions in your post.

If you are insolvent, you should take insolvency advice and explore your options.

Consider watching my brief video as a starting point:

- YouTube

Enjoy the videos and music that you love, upload original content and share it all with friends, family and the world on YouTube.

youtu.be

Then speak to a charity - like StepChange for advice on the best option for you.

StepChange Debt Charity. Free Expert Debt Help & Advice