my business has ceased trading, can't pay rent

[Lidy]

BANK HOLIDAY WEEKEND
Is anyone free to answer a few questions I need to know before I can make any decisions on my future?
It concerns a business lease, and how I go about either surrendering, forfeiting or bankruptcy to rid myself of a rent I can't pay as my business has ceased trading.

Thanks,

Lidy

[Reviva UK]

Hi there

there are always some forum experts about to give you some advice.

[Viki.W]

Hey Lidy, just wanted to welcome you to the forum. An expert will be along shortly to advise you. It may help if you can post a little bit more about your situation. You are in the right place for advice so please hang in there. Viki

[facingittogether]

hi - just want to say welcome!

i am not an expert just another person with debt problems but i am sure an expert will be along to advise you!

wishing you the best of luck and i am sure there will be a solution for you!

love barb x

[Soulgrowth]

Hi Lidy ... join the club!

My daughter ceased trading (retail) almost a year ago now but I was liable for the lease. You will be liable for lease payments until such a time that you can exonerate yourself from the lease or you can come to a personal agreement with your landlord that you will forfeit the lease so that he can find another tenant but this will only be as succesful as the landlord's ability to re-let the premises. Even though I am in an IVA my landlord has been able to claim not only for the outstanding rent but also for dilapidations and it has amounted to a ridiculous amount. I have also been liable still for the council tax payments which for last year I received a 50% discount on but this year there is no discount available (apparently the government have chanegd the rules). So this month I have had to pay £500 for April in council tax.

I am currently awaiting the outcome of a full and final offer which will give the landlord a proportionate return on his claim, putting him in line with the other creditors, and an agreement that I shall no longer be liable for the lease.

What is your general financial situation Lidy? Are you insolvent ... as, to be honest, the easiest way to get out of the lease is to declare yourself BR ... would you have any signifant assets you would lose by doing this?

All the best

Debbie

[lidrom]

I HAVE HAD PROBLEMS SIGNING IN AS LIDY, SO OPENED NEW REGISTRATION AS LIDROM

If the Business isn't trading [LL knows]

You ask for a surrender as your next step is bankruptcy, but only real creditor is the lease.

Mortgage on house NOT business, and joint [50/50] with husband and older relative .... Father-in-law agrees to keep up the payments of mortgage whatever, as he doesn’t want to lose the house.

WHAT NEXT?

I have been told by a solicitor that a commercial property company [owner a new entry into Sunday Times Rich List - Leeds] I have a lease which they will possibly not surrender, and not forfeit and make us no option apart from bankruptcy

Is this the absolute law, I have to go bankrupt over a bill at the moment of less than £1,000?

There is a few things more, like the landlord doing a special arrangement with me, when I was actually paying more for a months rent than I was if I could have afforded the three months in advance. They knew I was desperate, but I have kept up these payments until now as I have just run out of all possible funds to keep the business open.

I feel so ashamed of myself, as I have used all my own money, borrowed from relatives and my elderly Father in law [79] could lose his house.

My Circumstances – Married [Husband also on lease], 21 month daughter, caring for my Mum who requires specialist dialysis treatment three times a week and other complications. Live with Father-in-law / husbands house [4 adults + child]

[Soulgrowth]

Were you a limited company?

How long is there outstanding on the lease?

Do your own property and how much equity is in it?

Is there any likelihood that you could sell the lease? Essentially you are liable for the payments for the continuing duration of the lease.

Debbie

[lidrom]

Were you a limited company?
How long is there outstanding on the lease?
Do your own property and how much equity is in it?
Is there any likelihood that you could sell the lease? Essentially you are liable for the payments for the continuing duration of the lease.
Debbie

Hi Debbie,
The lease was signed as individuals, my husband and myself.
There is nine years left on the lease, and we are not in the situation to sell it as a decisions must be made this week about what we do.
My Husband owns half the house we all live in, and that is what is giving us all so many troubles.
I seriously need to speak to one of the experts, to see if I can stave of the BR I will do everything to make that happen.
Thanks folks, and please let me know if you have dealt with anything like this and how did you get out of it?

Lidy

[MelanieGiles]

Hi there

The advice that Debbie has already given you is very good - there are basicall three choices when it comes to getting out of a lease:-

Surrender - needs the landlord's agreement, and is unlikely unless he wants his property back for some reason.

Assignment - also needs the landlord's agreement, but if usually effected if you have negotiated a sale of the business.

Forfeiture - the landlord takes the lease back from you, but you remain liable under the agreement until a new tenant can be found or the lease is surrendered.

if you are to go bankrupt, and there is no value in the lease, the Trustee can apply for it to be disclaimed.

[lidrom]

Thanks Melanie,

Can I contact you or you me? I have my email on all the time and will pick up any message in minutes. I will call you or supply you with my number.


Lidy

Hi there

The advice that Debbie has already given you is very good - there are basicall three choices when it comes to getting out of a lease:-

Surrender - needs the landlord's agreement, and is unlikely unless he wants his property back for some reason.

Assignment - also needs the landlord's agreement, but if usually effected if you have negotiated a sale of the business.

Forfeiture - the landlord takes the lease back from you, but you remain liable under the agreement until a new tenant can be found or the lease is surrendered.

if you are to go bankrupt, and there is no value in the lease, the Trustee can apply for it to be disclaimed.

[Adam Davies]

Hi Lidy
No personal email adresses please,I'm sure Melanie will be in touch soon.
If not use her link to contact her
Regards

[Soulgrowth]

Hang on in there Lidy

Debbie