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Nov, 2014

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Thread: New Lease

  1. #1

    Default New Lease

    Hi, still trying to sell our cafe in Cornwall. We are at the end of a 15 year lease (its ongoing and ends in March) its old fashioned and asks for any payment to be made to the Landlord within 7 days, also as it is at the end of the term I have nothing to sell but the goodwill and fixtures and fittings which makes the business worth half less than we paid for it. If we ask for a new lease in the new owners name are we still liable under the terms of the old lease if the new owners go bankrupt. I am receiving conflicting views as my Solicitor is away ill and his Locum states that if I do not have a new lease in our name we have nothing to sell. is this just a technicallity . So basically what I need to know is if the new owners have a brand new lease will we still be liable somewhere in the future. We are now in our 60s and will only have our retirement pension. Thanks again. (Your site is very helpful).

  2. #2
    Join Date
    Sep 2006
    Location
    Sheffield
    Posts
    39,409

    Default

    Quote Originally Posted by Nee View Post
    Hi, still trying to sell our cafe in Cornwall. We are at the end of a 15 year lease (its ongoing and ends in March) its old fashioned and asks for any payment to be made to the Landlord within 7 days, also as it is at the end of the term I have nothing to sell but the goodwill and fixtures and fittings which makes the business worth half less than we paid for it. If we ask for a new lease in the new owners name are we still liable under the terms of the old lease if the new owners go bankrupt. I am receiving conflicting views as my Solicitor is away ill and his Locum states that if I do not have a new lease in our name we have nothing to sell. is this just a technicallity . So basically what I need to know is if the new owners have a brand new lease will we still be liable somewhere in the future. We are now in our 60s and will only have our retirement pension. Thanks again. (Your site is very helpful).
    You need a new lease which you can assign. Failing that, you will have a continuing business tenancy held-over after fixed term expiry and protected by part II of Landlord & Tenant Act 1954 [unless Act's effect was excluded by Court Order before lease completed].
    Once you assign to your purchasers, you are not liable on lease itself. You might be liable if (but only if) L requires you to guarantee purchasers' liability but even that will end when they assign to someone else.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

  3. #3
    Join Date
    Feb 2005
    Posts
    104

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    Worth seing if your landlord is amenable, and willing to write your buyer a brand new lease.

    Technically, if he won't play ball, you will need to get a new lease in your name, and assign to the new tenant. Depending on what's in your old lease, you may need to guarantee the new rent payments.

  4. #4

    Default New Lease

    Thank you that makes it clearer, have I an ammenable Landlord, don't think so hes the one who landed us with a bill for 13k for repairs. !!!!, we have had 'serious breach of conract' letters because a pigeon nested on our back windowsill. Regards, Nee.

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