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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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MY TENANT HAS SOLD HIS RETAIL BUSINESS TO AN EMPLOYEE AS HE

Customer Question

MY TENANT HAS SOLD HIS RETAIL BUSINESS TO AN EMPLOYEE AS HE WISHES TO RETIRE. HE DID THIS WITHOUT INFORMING ME ALTHOUGH HE TOLD ME HE WAS IN NEGOTIATION WITH HER. THERE HAS BEEN NO REQUEST FROM HIM FOR A LICENCE TO ASSIGN BUT HE IS NOW AWARE THAT HE SHOULD ASK ME FOR CONSENT.
UNTIL THIS IS FINALISED I PRESUME HE IS STILL LIABLE FOR THE RENT TO ME ALTHOUGH HE NO LONGER OWNS THE BUSINESS. IS THE NEW OWNER OF THE BUSINESS NOW TRADING FROM MY PREMISES ILLEGALLY?
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.For now please let,me know if the lease is in his personal n,as or the business ?
Customer: replied 1 year ago.
The Lease from me to my tenant was in the name of his Limited Company and ALSO in the name of him and his wife
Customer: replied 1 year ago.
Please read again the question you asked me. It does not make sense. "personal name as or" ???? What is that?
Customer: replied 1 year ago.
We seem to be getting nowhere with my straightforward question. You asked me a question but because of your careless typing it did not make sense. I am going out shortly so if you are replying to me after 6.30 pm. please use my e mail***@******.***
Expert:  Ash replied 1 year ago.
All,communication must be through this question Who was the lead tenant? Was it w else lease in the name of a company with the husband and wife named as guarantors?
Customer: replied 1 year ago.
The Lease states it is between me of the first part and xxxx Ltd hereinafter called the tenant of the second part and Andrew XXX and Diana XXX hereinafter called the Sureties of the third part.
The XXX s are a married couple and were Directors of the Company but resigned as Directors on selling the business to the employee I have referred to.
Hope this helps.
Expert:  Ash replied 1 year ago.
Does the lease require your permission if it to be assigned or the business sold?
Customer: replied 1 year ago.
yes , "not to charge part with or share possession or occupation of the whole or any part of the premises except by way of an assignment or underlease"
Expert:  Ash replied 1 year ago.
Ok - well I can say its not illegal. There is no criminal offence here.But what the old tenant has done is breached the contract. They need to regularise the position or you could give notice and seek possession.But its not illegal just a breach of one of the terms.If they refuse to correct it then you can write, give notice and ask them to leave. If they do not then you can seek a Court order for possession.Can I clarify anything for you about this today please?Alex
Customer: replied 1 year ago.
Thank you Alex. I was concerned that the tenant had walked away from the business and that I now have an unknown "tenant" who has bought the business and is in situ in my property. I assume that my original tenant is still responsible for the rent etc until the Lease has been properly assigned?
Expert:  Ash replied 1 year ago.
Correct. That is indeed the case.
Expert:  Ash replied 1 year ago.
Can I clairfy anything else for you?Alex
Ash and other Law Specialists are ready to help you
Customer: replied 1 year ago.
One more query. My tenants who have sold the business are described in the Lease as "Sureties" Is this the same as "guarantors"? The Lease is dated Jan 1996 AFTER the "privity of contract" law finished. Can I go back to them for rent if the new tenants they have sold to fail to keep to the obligations under the Lease even though a Licence to Assign has gone through?
Expert:  Ash replied 1 year ago.
yes they seem to be guarantors
Expert:  Ash replied 1 year ago.
They remain as guarantor until released.Does that help?Alex
Customer: replied 1 year ago.
yes but my question is are they released from being sureties or guarantors by virtue of assigning the Lease to the buyer?
Or do they remain as guarantors/sureties for the remainder of Lease? ( 2 years still to run of a 20 year lease). I need to know if I can hold them responsible if the new tenant defaults.
Thank you----- that really is my last question to you. You have been a great help.
Expert:  Ash replied 1 year ago.
no they are not released unless you release them.Does that help.
Expert:  Ash replied 1 year ago.
Alex
Customer: replied 1 year ago.
Yes thank you , you have relieved my mind.
Goodbye.
Expert:  Ash replied 1 year ago.
Good luck. Alex
Expert:  Ash replied 1 year ago.
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