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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I had set up a Ltd company, however, due to circumstances out

Resolved Question:

I had set up a Ltd company, however, due to circumstances out of my control I am no longer able to continue with the business. In the contract with the landlord for the property it states that if I (the Ltd co) vacate the premises early I am liable to pay the outstanding monies due. As the business hasn't traded and has no assets and I am looking to wind the company up where do I stand on paying this - or rather not paying this.
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

When you say I do you mean the Limited company or you personally please?

Customer:

Thank you Alex,

Customer:

In which part, I am the sole director of the limited company so I guess I'm asking as both parties am I liable to pay anything should I wind up the company?

Alex Watts :

But does the lease say you have a personal guarantee?

Customer:

Could that also be called a surety?

Alex Watts :

Yes.

Alex Watts :

Does it say anywhere you can be personally liable?

Customer:

In that case yes, I have signed a surety statement

Alex Watts :

Ok - its bad news then.

Alex Watts :

You are personally liable for any arrears and the remaining term.

Alex Watts :

The Landlord should mitigate his loss by getting another tenant

Alex Watts :

But you are liable for the arrears and term remaining

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

Should they have informed me that I should take legal advice before signing the contract?

Alex Watts :

No.

Alex Watts :

That is only for loans.

Alex Watts :

I assume you read it before you signed it?

Customer:

Probably more fool me that it was all set up in about 10 minutes

Customer:

Do you know where I stand on things such as business rates to the local authority for the business?

Alex Watts :

Those you wont be personally liable for or any other debts as long as there is not a personal guarantee

Alex Watts :

Does this help?

Customer:

It does, thank you verymuch

Alex Watts :

Great. If I could invite you to rate my service before you go, there should be a button at the bottom of the screen

Alex Watts :

If you need more help please click reply

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