can you help about a lease-before we have to go Bankrupt?

wicca1

Hi all,not sure were to post this one,Ok this is our own fault for being a bit naive,we have entered into a lease with a couple of others to take on a council lease, as it would be a bit cheaper, things haven't worked out and we are being bullied,we were told we could leave after 3 years so we thought we could cope and hang it out,only to find out that the break clause is if we all leave and We dont want to stay, any advice, all we want to do is protect our only asset we have, which is our house,any ideas? has any one had any dealings with councils over leases? thanks in advance

gizmo111

What sort of lease do you mean?

wicca1

Shop lease,can you help ,I really hope so

gizmo111

Surely this will be included in the BR along with any rent you owe on it. What about the other 2 people on it? Your previous thread said that you had just completed an IVA how does BR fit in now?
Have you asked about the lease on the BR Board?

wicca1

Hi, nothing to do with iva, compleatly different.My husband took on a lease with 3 others, who said a break clause was in place so they could leave after 3 years if it dident work out,he wants to leave after the 3 years , but has now found out that unless they agree he can not leave,he was worried that if the business fails and he has to leave,who would chase him the council or the other tenants, one of the other tenneants wants to leave due to the same reason as him,so two wish to leave two wish to stay,that is why i said about the BR, nothing to do with any debt we have, but could they force him into BR , it is hypothetical, but every avenue we have gone down, we have hit a brick wall, so I have come to a place were I know if some one has information they will, not judge but will offer their advice .thanks in advance

wicca1

Hi thanks , how do i get to the BR board?

Grumpelstiltskin

The Bancruptcy board is here,

http://forums.moneysavingexpert.com/forumdisplay.php?f=136

gizmo111

wicca1 wrote: »

Hi, nothing to do with iva, compleatly different.My husband took on a lease with 3 others, who said a break clause was in place so they could leave after 3 years if it dident work out,he wants to leave after the 3 years , but has now found out that unless they agree he can not leave,he was worried that if the business fails and he has to leave,who would chase him the council or the other tenants, one of the other tenneants wants to leave due to the same reason as him,so two wish to leave two wish to stay,that is why i said about the BR, nothing to do with any debt we have, but could they force him into BR , it is hypothetical, but every avenue we have gone down, we have hit a brick wall, so I have come to a place were I know if some one has information they will, not judge but will offer their advice .thanks in advance

Well can't the two who want to stay take on the lease and release the two that don't want to stay? How long is the lease?

wicca1

The shop would be to expensive for just the two, thank you for all your help will pop the question on to the BR board, but not sure if that is the right place to ask the question either

bargainbetty

Even the legally trained here would need more information.

If the lease is a business lease, then your husband should be part of a company - if two of the members of the group wish to utilise the break clause, then a formal resolution of the group can be made. If it is no more than four individual signatories, then there should be a clause in ther lease regarding the surrender requirements. What are the share options? What do the mems and arts say about responsibility for a lease? Is it in their personal names, or on behalf of a registered company?

Perhaps the two who wish to retain it should be asked to accept the surrender of the lease and then renegotiate the lease in their own names. If they cannot afford it without others, they need to be shown they cannot afford it.

The two wishing to surrender it can also consider paying a solicitor to draft a 'Deed of Assignment' transferring full ownership of the lease to the two remaining individuals, rather than a full surrender.

Offer them the choice of surrendering it or taking it on alone. What is the brick wall you are meeting on surrendering it to the council? A notarised document on behalf of the two members wishing to extricate themselves should be enough to exercise the break clause. Is there a demand for all four to sign it? Usually one or two individuals from a group can do it without issue.

You need legal advice. Ask for a 30 minute consult with a solicitor, skip the bullying lines and keep it brief. The business type, lease structure and so many other variables make this too vague for the boards.

Good luck.

DVardysShadow

Probably this could usefully go to the Housing forum. As I read it, it is a Joint and Several tenancy. And case law seems to indicate that if only one part of a Joint and Several tenancy gives notice, the notice is binding on all tenants.

Now what is unusual here is that it seems to be a commercial tenancy - and it has been granted to a Joint and Several tenant. Whether the case law extends to commercial tenancies, I have no idea - but the principle seems to me to be good for a commercial tenancy too.