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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 26070
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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How can I reduce lease payments for CCTV equipment. My business

Customer Question

How can I reduce lease payments for CCTV equipment. My business closed (sole trader) 31/05/2013 but I'm still liable for the equipment lease. Thank you. Neal
Submitted: 3 years ago.
Category: Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

May I ask where the actual equipment is at present please? Has it been returned or do you still have it?

Joshua :

How long is left on your lease agreement?

Customer:

Hi,

Customer:

The CCTV is still in place at my home where I used to trade in providing residential care for elderly people. The lease finishes in May 2017, started in 2011 paying £285.00 per quarter

Joshua :

Thank you. presumably I would be right to understand that the equipment can be removed and physically returned to the owner. Is that correct please?

Customer:

Yes, it's in the place they installed it

Joshua :

thank you. The starting point is that as you fear, you are liable for payments under the lease until its conclusion unless there is a break provision allowing you to end the lease early at certain intervals during its term. if you were to cease payments otherwise than in accordance with the above, then this would amount to a breach of contract.

Joshua :

however, this does not necessarily mean that the lessor can demand payments from you up until the end of the lease. this is because they have an overriding common law duty to mitigate their losses in respect of any breach of contract on your part

Joshua :

what this means in practice is that you can contact them advising that you need to look to bring an early end to the lease and accordingly asked them to collect the equipment in order that they can attempt to lease the same to a third party.

Joshua :

on the basis that they can lease the equipment to a third party, you would only be liable for lease payments up until they were able to do so and the difference between the amount they are entitled to under the terms of your lease and the amount they can obtain from any third party

Customer:

Do you have a letter template?

Joshua :

I can prepare a precedent you can use if you would like. It is not possible to do so in chat. If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you to date. Your feedback is important to me. this will also convert the thread to a question and answer format which will enable me to post a template you can consider.

Customer:

Thank you, XXXXX XXXXX rate and look forward to the precedent

Joshua and other Law Specialists are ready to help you
Customer: replied 3 years ago.
Expert:  Joshua replied 3 years ago.
Dear Sirs
RE: lease agreement number

I wrote to advise that I wish to terminate my above lease as soon as possible.

I am conscious that there is a minimum term associated with my lease which has not yet expired. As you will be aware, you are under a common law duty to mitigate your losses in respect of any breach of contract and accordingly I write to formally request that you either collect the equipment or alternatively that you provide permission that I remove the equipment and return the same to you.

I was formally request that you attempt to lease the equipment to another party as soon as possible in order to mitigate your losses as a result of my request to terminate the lease early.

I should be grateful for your early response and any event look forward to hearing from you within 10 working days

yours