# Cant meet obligations on commercial 5y lease, Can landlord take my domestic residence



## Petula (27 Nov 2008)

I posted this previously but got no response. 

My florist business failed and I still have 5 years to go on my lease, which has no opt-out clause. I have no savings left and am only working part-time as am a single mother. 

My landlord has refused to renegotiate on reducing the lease. I am proposing to offer him a certain amount per month (whatever I can afford), but if he refuses the offer as I think he will, I will probably be brought to court. My only asset is my home, could this be taken off me to settle the outstanding lease?



Petula said:


> Hello. I am in a similar position to this man, and the responses really frightened me. My florist shop closed down a few month ago and i still have 3 years left on the lease. I have no money apart from my house and am also a single mother. I have applied for legal aid and believe i will get it, can the courts force me to sell my house ?


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## mercman (27 Nov 2008)

*Re: Can landlord take my home ?*

In the first instance you should have a third party (your solicitor) negotiating on your behalf. I'm no legal expert, but the vewry least he will do is get a judgment mortgage against you. Has any discussions with the LL been held ??


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## murphaph (27 Nov 2008)

*Re: Can landlord take my home ?*

It is technically possible but (almost) unheard of for a court to order the sale of the family home to settle any debt. 

If your LL does take you to court he may indeed get a judgement against you but that does not mean the LL can force you to sell. The LL can use the judgement he may get against you to register it against your mortgage, so that you could not sell up or remortgage without discharging your debt-this is common. Your LL may yet negotiate with you though if you tell him you have no money as a court (given your tough circumstances) may only order a paltry repayment per month and the LL will be waiting a LONG time to get anything, if ever. 

Sorry to hear about your circumstances, but don't worry and hold on to your health ;-)


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## j26 (27 Nov 2008)

*Re: Can landlord take my home ?*

While in theory, a judgment mortgage could be registered, followed by a well charging order and an order for possession, in reality this almost never happens, particularly if the property is the family home.  In all likelihood a judgment mortgage could be registered, so if you try to sell in the future you'd have to pay it off.


If you can't negotiate terms with the landlord, can you try to assign the lease to someone else, so they'd take it over?


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## jhegarty (27 Nov 2008)

*Re: Can landlord take my home ?*

Is there no way that the lease can be broken. Have a solicitor check it in case there is a way you don't spot. There may be some tiny legal detail not correct there somewhere you can take advantage of.


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## Vanilla (28 Nov 2008)

*Re: Can landlord take my home ?*

Well charging orders are granted really only in circumstances where the debtor is NOT paying. So even if you are just paying a small amount ( if this is all you can afford) it is unlikely that your house could be put in danger of being sold. As others have said though it is likely that the landlord will put a judgment mortgage or charge over the house which would mean you wouldnt be able to remortgage, transfer or sell it without paying off the judgement first. The procedure for him to get a judgement mortgage would be for him to take you to court, get the order against you and then apply for the charge against your property. 

If it were possible for you, instead, to get a loan for X amount ( less than the total amount under the lease) you could offer that to the landlord as a lump sum now which would be an enticement for him to settle with you. Otherwise why would he bother negotiating the amount.


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## Petula (28 Nov 2008)

*Re: Can landlord take my home ?*

I dont think that i could get someone else to take over the lease, as other units in this complex are also vacant, nothing seems to be moving there. If the court orders a judgement mortgage and i eventually sell the house in say 20 years time, is it the original value of the lease that would be charged, or the lease plus inflation and/or interest ?
Thanks to everyone for their comments, its much appreciated


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## murphaph (28 Nov 2008)

*Re: Can landlord take my home ?*



Petula said:


> If the court orders a judgement mortgage and i eventually sell the house in say 20 years time, is it the original value of the lease that would be charged, or the lease plus inflation and/or interest?


That's a good question which I don't know the answer to but would like to. Anyone?


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## j26 (28 Nov 2008)

*Re: Can landlord take my home ?*



murphaph said:


> That's a good question which I don't know the answer to but would like to. Anyone?


It would be the amount of the judgement plus interest at court rate from the date of the judgment, but the creditor would most likely settle for less if offered 



Then there's the whole Statute of Limitations thing on debts


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## simon44 (30 Dec 2008)

*Re: Can landlord take my home ?*

You've technically broken the contract by not paying him so thus he can do whatever he wants and no solicitor can help you in this respect i'm afraid. They cant take your house unless that was collateral as part of the agreement unless you owe a tonne of money (20+ grand at least). I'd say you've done the right thing by offering to pay something each month and I think the judge will accept this especially considering the economic climate.


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## dewdrop (31 Dec 2008)

*Re: Can landlord take my home ?*

I would reckon many many more people must be in your difficult situation. as previous posters said dont worry about your house. Just wondering if anyone had gone guarantor on the lease as the landlord will proceed against them..also if he takes legal action it will affect your ghcredit rating though i feel that is the least of your worries right now.


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## mcaul (31 Dec 2008)

*Re: Can landlord take my home ?*

If the business was run as a limited company and you did not have a personal guarantee on the lease, then the liability stops at the limited company.

If the lease is in your name and the guarantee / lease is for the full remaining term, then there is a possibility that he can take you through the courts, however a good solicitor will find ways of frustrating this. EG - Did he make enough attempts to fill the vacant units. Did the fact that vacant units remained empty affect your business etc etc.

Also you'll find that waht a landlord says and what his legal team will advise are 2 different things. - e.g. what's the point in getting judgement against a person who is unable to pay?     

Finally, he's tryng to be a bully. - Hand him back the keys (or post them) and tell him to direct all correspondance to your solicitor. - Best for you that all negotiation is done through the solicitor.


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## tick tock (31 Dec 2008)

*Re: Can landlord take my home ?*

the land lord can not take your home. he is just a horrible bully. you can not get blood from a stone.


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## ajapale (31 Dec 2008)

*Re: Cant meet obligations on commercial 5y lease, Can landlord take my domestic resid*

Title edited to more fully reflect the question.


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## Lollix (1 Jan 2009)

*Re: Cant meet obligations on commercial 5y lease, Can landlord take my domestic resid*

Can you not start another business from the premises? Go to one of the cheap importers and start a pound shop, or anything that will bring cash flow.


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## rabbit (2 Jan 2009)

*Re: Cant meet obligations on commercial 5y lease, Can landlord take my domestic resid*



Lollix said:


> Can you not start another business from the premises? Go to one of the cheap importers and start a pound shop, or anything that will bring cash flow.


 
Good idea.  Lots of businesses have to diversify or adapt in order to survive.  You should have looked in to the responsibilities of taking on a lease before you took it out.  You cannot walk away from one that easily otherwise what would be the point of entering one in the first place ?


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