Lease nightmare

[norbatious]

Hi,

I have a retail unit that is on a 20 yr lease, which i never signed, but have paid every month for the last 2 1/2 years.

Can I just walk away from this as I never signed the contract and at the moment this unit is far to big for my needs after downsizing.

 

[Paaula]

no answers, sorry - but also looking for lease advice. If I signed a 15 year lease but cannot meet the payments, what are my options? And if I fail to pay, as a sole trader, can the owner of the building go after my family home?

 

[Vanilla]

Hi,

I have a retail unit that is on a 20 yr lease, which i never signed, but have paid every month for the last 2 1/2 years.

Can I just walk away from this as I never signed the contract and at the moment this unit is far to big for my needs after downsizing.

Did you sign a contract to lease? Who did the fit out? Why didn't you sign the lease? You need specific advice, probably best to see your solicitor.

 

[Vanilla]

no answers, sorry - but also looking for lease advice. If I signed a 15 year lease but cannot meet the payments, what are my options? And if I fail to pay, as a sole trader, can the owner of the building go after my family home?

Your options are to negotiate a settlement with the lessor, failing which they may seek a judgement against you for a figure for lost rent, which they can register as a judgement mortgage against your family home. If you are seen to be making an effort to make payments, relative to your circumstances then it is very unlikely a court will force the sale of your home to pay the judgement.

 

[norbatious]

Did you sign a contract to lease? Who did the fit out? Why didn't you sign the lease? You need specific advice, probably best to see your solicitor.

Vanilla, no I did not sign a contract , but received one, i done the fit out, but the cost of the current lease is crippling me as i closed part of the business as it was losing money and know i have too much space . help needed solicitor is very slow coming back to me.

 

[elgransenor]

Hi,

I have a retail unit that is on a 20 yr lease, which i never signed, but have paid every month for the last 2 1/2 years.

Can I just walk away from this as I never signed the contract and at the moment this unit is far to big for my needs after downsizing.

You need to consult a solicitor on this to confirm but the lease is unenforceable as it does not comply with the formalities for creating a lease under S.4 Deasys Act which simply states that if the lease intended is for more than 1 year then it must be executed in writing by both parties.

 

[elgransenor]

no answers, sorry - but also looking for lease advice. If I signed a 15 year lease but cannot meet the payments, what are my options? And if I fail to pay, as a sole trader, can the owner of the building go after my family home?

Paaula,
as a sole trader you have unlimited liability so the landlord can initiate legal proceedings and secure a judgment mortgage against you and ultimately register it against your house.

However he can not enforce it;it will merely be a charge on the house until you go to sell or remortgage-then it will cause problems for you and he will get the money from the proceeds of your sale.

You need to talk to him and explain the problems you have.