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UK-Justice
UK-Justice, Barrister
Category: Law
Satisfied Customers: 16193
Experience:  Called to the Bar in 2007
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hi really need some help regarding a busniess lease i signed

Customer Question

hi really need some help regarding a busniess lease i signed in my personal name even tho the landlord was told i was ltd, i have had to close Beautopia Spa Ltd and did the normal thing of notifying everyone that we are insolvent. This included the landlord. The lease was signed in my personal name and my parents where the guarantors. The lease doesn't end until February 2014. We started trading has Beautopia spa from 2 weeks after signing the lease. The landlord was notified that we are a limited company. Has he has sent all invoices to use in the Beautopia spa name. When I paid my deposit for the building and first months rent he send the invoice in smile clinics Ltd which was a sole traders company I owned at the time. He was also informed then that we are not smile clinics ltd and we was Beautopia spa ltd at this time. which he then changed all invoice for payment into Beautopia spa and this has been the case for nearly the last two years. He also as took possession of the building from the 4/2/2013 and locked us out of the building and notified me be email as there is arrears on the account due to us going insolvent which we have notified him about. He his also now threatens to send the bailiffs in to me and my parents who guarantor the lease. He his also still charging rent after locking up the building( which I'm under the impression that this can't be done) I'm also wanting to know in my eyes that the landlord if fully aware we where a Ltd company has we have always had the invoices sent to us from him in the business name and not my personal name.

Can you help me to stop the threats of bailiffs. Has I thought It was only a court that can grant this if this was the case.

I have all relevant document to support everything copy of invoices in smile clinics ltd, then changed to Beautopia spa copy of all emails sent to and from. Iv even asked for the solicitors details to resolve this matter and the response was the bailiffs have been notified.
HELP just dont know where to go so someone can help me or what to do.

kind regards

Dawn
Submitted: 3 years ago.
Category: Law
Expert:  UK-Justice replied 3 years ago.
Thanks for your question, my name is Nic I will do whatever I can to help you today.

Does it have a cancellation clause?
Customer: replied 3 years ago.


Hi its just a law socitly lease. but with being a ltd company thought i wouldnt have to pay the outstanding amount has we have had to go insolvent.


and the landlord was informed we are ltd and all correspondence as been made to the ltd company

Expert:  UK-Justice replied 3 years ago.
And can you confirm the lease is between you personally and the Landlord?
Customer: replied 3 years ago.


Yes it was in my personal name but then told him it was a ltd company as soon as we started trading and for the last 2 years he as been sending invoices in the company name not my personal name


 


 

Expert:  UK-Justice replied 3 years ago.
Why did you sign it, if it was in your personal name?
Customer: replied 3 years ago.


Because we didnt have the ltd company through when i signed the lease i signed the lease on the 1st feb 2011 and went ltd on the 2nd march 2011 and he sent the original invoices in a sole trader name i owned at the time but put ltd on the head of the name, as soon as we went ltd he was informed and all future invoices where made out to the company name. and as been for nearly two year. so he is totally aware that it was a ltd company.


 

Expert:  UK-Justice replied 3 years ago.
Thanks.

What is it you want to achieve?
Customer: replied 3 years ago.


i was under the impression as we have had to go insolvent that this money will not have to be paid. He his also trying to claim the outstanding rent. When he as changed the locks on the building and took persestion of the building back. So i do know he can know longer charge me for the outstanding lease i have been given this advice from the business debt line. But he seems to think that he can carry on charging me. i need to know what the law is and how i go about sorting this out, has he is threatning me with baliffs. I need to know what i can do. I have explain this in the first email i sent to your company. can you help me


 

Expert:  UK-Justice replied 3 years ago.
The problem is this - you have a contract.

You signed the contract in your personal name. You could have set up the Ltd co before before you signed it.

If it went to Court a Judge would say, well you are businessman - did you not read the terms? You must say yes.

The Judge will say, did you not see if it was in your name - again you will answer yes.

As such you knew it was in your name and signed it as such.

Even if I am wrong about that - your parents are guarantors. That means that if a Court does not find you are liable, then your parents will be.

I am sure you do not want to do that to them.

However in terms of remaining rent as you had a contract in your name then in law you are liable for the remaining rent.

However if the Landlord gets a new tenant and he should take all reasonable steps to do so, you would only be liable for the vacant part.

So you would be liable for when the property is empty.

But you are liable for the rent.

I am sorry if this is not the answer you are after, but based on what you have said, this is the legal position.

I hope this helps and if there is anything else I can do to help you today please let me know.


Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
Customer: replied 3 years ago.


Why is it that the business debt line says that if the landlord breaks into the property and takes back persestion of the building the iam not liable for the rest of the lease has he as in effect broken the law by entering. Is this not the case

Expert:  UK-Justice replied 3 years ago.
It is.

But if you are in arrears the lease ends.

But you are still liable for the remaining until it is relet - because you have a contract.

Otherwise you are incurring more loss and the Landlord has a legal duty to mitigate loss.

I hope this helps and if there is anything else I can do to help you today please let me know.


Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
Expert:  UK-Justice replied 3 years ago.
I'm just following up with you to see how everything is going. Did my answer help?

UK-Justice

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