Sole trader to Limited company - New lease?

RICKSTEINS33

I am moving my retail business from sole trader to a limited company.

Same name, same business.

Should I contact landlord and update the lease? I fear they might ask for more money as my shop is situated at a good location.

However, could I just carry on with the old lease and have the limited company paying myself as sublet?

Aquamania

RICKSTEINS33 wrote: »

I am moving my retail business from sole trader to a limited company.

Same name, same business.

Should I contact landlord and update the lease? I fear they might ask for more money as my shop is situated at a good location.

However, could I just carry on with the old lease and have the limited company paying myself as sublet?

Seek independent legal advice.

I suggest you do not even understand the facts as they are.

Are you allowed to sublet the premesis (with or without the landlords express permission)?

phill99

Typically, you would need to assign the lease to the Limited Company from your self. The Landlord can charge for the admin involved in this.


You can't just sublet, even to yourself as this may be against the covenants in the lease. Even if you did, there would still be legal costs involved.


As your new company has ne trading record, no assets and no Accounts, the landlord may decline your assignment unless you offer a Directors Guarantee.

phill99

And also Its not the same name. J Smith is not the same name as J Smith Ltd. They are two legally different entities.