Business lease etc

Simontheframer

I have just been made bankrupt and am awaiting the dreaded OR interview. I plan on continuing to trade. There seems some differing advice on what happens to my business lease and it being an asset. James Falla from BeatmyDebt has said that in all the cases he's dealt with the OR has never been interested in taking control of a lease, why would they!?. Advice appreciated

MEM62

Simontheframer wrote: »

Advice appreciated

An observation rather than advice - there is no point in using a paid for service if you do not trust the advice and feel the need for confirmation from these forums.

Simontheframer

I'm not using a paid for service, the advice James gave was free during an initial call. I'm sure he's correct in his experience but as there seems some confusion regarding leases after bankruptcy was asking for other people's experiences. Thanks anyway!

MEM62

Simontheframer wrote: »

I'm not using a paid for service, the advice James gave was free during an initial call. I'm sure he's correct in his experience but as there seems some confusion regarding leases after bankruptcy was asking for other people's experiences. Thanks anyway!

That makes sense. There are those that pay for advise and don't trust. In which case they need a different advisor.


I am not sure that a business lease (as in an arrangement for you to lease premises) is an asset. I would be if you were the freeholder and perhaps that is where any confusion is arising.

Simontheframer

Thanks for your reply. I can't see how my lease could be regarded as an asset, it's no different than my shorthold tenancy agreement for my flat, an income expenditure to go on my statement of affairs!

Flyright

A business lease will normally be viewed as a potential asset and will likely be valued by an OR's agent.

TheGardener

Flyright wrote: »

A business lease will normally be viewed as a potential asset and will likely be valued by an OR's agent.

Even I'm interested in this - why is it an asset? Nothing belongs to the OP and unless he paid his rent upfront for a year or something, I can't understand where the 'asset' is?

Simontheframer

My thoughts too, just don't see how a lease that you pay monthly can be considered an asset, maybe I'm missing something!?

TheGardener

Maybe it could be sublet and an income generated? I really don't know - will have to wait for someone with more knowledge to explain how a lease is an asset.

WhenIam64

A business lease will normally be viewed as a potential asset and will likely be valued by an OR's agent.

It is no different from a mobile phone contract. It is an agreement to pay for a specific time at a specific rate for whoever has the lease. It can be traded at a value where the discounted cash flow of the lease can be compared to other similar properties.

Here is a real life example of a BHS lease on a property that could not be re-let

http://www.mondaq.com/uk/x/801926/landlord+tenant+leases/Can+A+Landlord+Forfeit+A+Long+Lease

Drive down any High Street and look for "Lease for sale" signs. There will be a few and then ask, why is it being sold if it has no value.

Simontheframer

I still don't see how it can be can asset unless the OR fancys taking on a small unit on an industrial estate as a picture framer!. The OR doesn't own the lease so there isn't anything to trade?. Apologies if I'm just missing something!