Advice on leaving rented premises

crizsez

Hi all, new to the forum and not sure if this is the right place for this? Also, it’s a long one so sorry in advance and if you do take time to read it Thank you!

 

I have a small business with my dad, it’s a small shop suppling tiles, bathrooms and associated materials, we also provide a fitting service. I must make it clear we have never been making good money from the business, we have had ups and downs but averaged out, we would both have been better financially working a minimum wage job if I’m honest! But we have had other benefits of being self-employed over this time.

 

We took the business over 17 years ago with the idea my dad would come off the tools and be more sales based in his older age (He is 73 this year) while I concentrated on installation, this didn’t happen as we planned, as it turns out my dad is not good with paperwork or computers.   As a result, it means when I’m not out working, I am having to do all the paperwork, VAT, Banking and accounting. His age has meant that he is doing less and less recently, and I had discussed with my dad late last year that I was not happy continuing like this, and he agreed we would have to change things soon.

 

Obviously, the current corona virus situation has brought the decision to change forward! My dad has gone into lockdown at home as his age and 60 years as a pipe smoker put him in the high risk category, he has also said he isn’t feeling like he could go back to work full time again, my wife is a nurse who specialises in asthma and chronic disease, has said he is showing all signs of COPD, which he is trying his best to hide from us and refuses to see a doctor. I have 3 children under 7 years old, 2 at school and one nursery, so I am currently a home with them, and the shop will remain closed.

 

I have discussed with my dad and we both think the best decision is to close the shop asap and for me to go back to just installation once schools and nursery reopen and the in-laws are happy to resume childcare, obviously that could easily be September so have to survive financially until then.

 

So, the problem we have is the shop, it is rented by us on a quarterly payment, we have paid the current quarter which takes us up to end of June, we have received the government grant and that is already getting used, If we don’t leave the shop we will have nothing left by end of July. So If we can wrap the shop up by end of June that will leave me with a small amount of money to keep me going for a good few months while trying to get back to work (I have a good few weeks of work already to go once I’m able to get going again).  Our lease agreement ended either June 2014 or June 2017? I know this will seem lapse on my part, and it is, I am working from memory as we had a 3 year lease to start in 2003, another 3 years in 2006, and then in 2009 we signed another (Which I have a copy of) it says the decorating years are 2012 and 2014??? I am pretty sure the last time I spoke to the landlord we said it would be a 5 year lease, so I’m guessing it is the one starting 2009, but I could have done another 3 year lease before that. Either way I’m not in a lease agreement at present, for how long I can’t be sure.

 

At this point I have to add something I’m not proud of. The credit crisis hit us hard in 2010-2013, with large periods of little to no work or customers and we missed some rent payments as well as building large credit card debts to get us through, I have been dealing with the credit cards and have them down to a manageable level with a debt recovery firm. The rent was a different matter, the first missed payment was a genuine mistake, a standing order hadn’t gone at the start of the quarter and by the time I did the accounting at the end of the quarter when I noticed I knew we didn’t have the funds to pay effectively 2x rent in one so I decide to just pay the next quarter and wait for the landlord to notice the missed payment, They didn’t for nearly 3 years! By which time I had missed another 3! Since then I have paid some back (Approx. 20% in 2 payments) But haven’t been making regular payments or anything arranged, In fact the landlord has only asked for the money 5 times since they first noticed and that was more in conversation than anything formal.

 

So, to get to the point, what I’m asking is how do I stand If I call the landlord and say I’m going as of end of June? If I have no lease am, I obliged to give more notice than 2 months? Also, if they decide to chase me legally for the unpaid rent how do I stand? I don’t have savings or a pension, the only thing I have worth anything is our house with 20 years left on the mortgage, so if I am taken to court would our home be in danger? Does the fact it’s from 7 – 10 years ago change things? Also does the fact I have been paying on time in full for however long out of a lease agreement matter??

 

Many thanks

criz

oldbikebloke

crizsez said:

So, to get to the point, what I’m asking is how do I stand If I call the landlord and say I’m going as of end of June? If I have no lease am, I obliged to give more notice than 2 months? Also, if they decide to chase me legally for the unpaid rent how do I stand? I don’t have savings or a pension, the only thing I have worth anything is our house with 20 years left on the mortgage, so if I am taken to court would our home be in danger? Does the fact it’s from 7 – 10 years ago change things? Also does the fact I have been paying on time in full for however long out of a lease agreement matter??

the lease "rolled over" since neither you nor the LL served notice to end it - you could have googled that 
https://www.savoystewart.co.uk/blog/what-happens-when-commercial-lease-expires

therefore, if you run away now, your LL can indeed sue you depending on the terms of the lease. As it appears you are not a limited company, yes, potentially everything you own is at risk if your business is sued since there is no distinction between "you" and "the business".

so what you need to do is serve notice to end the tenancy 

time for you to sort out your paperwork and find the most recent lease so you find out what the notice period per the lease requires of you...

take note that you have a commercial lease, so don't confuse yourself by thinking that "2 months" is required as per a residential letting. Your lease may be very different but one thing for sure, it will have wording covering how to serve notice.

lincroft1710

Do check that your lease doesn't have one of those clauses where you have to continue paying the rent until a new tenant is found. 

Don't forget to contact your utility suppliers.

martindow

It is all down to the terms of the lease.  Can the solicitor used when it was first taken or renewed out have a copy they could send?
Commercial leases can have some onerous terms such as paying for dilapidations when you leave.