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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a ten year lease on a retail shop premises. I have a

Resolved Question:

I have a ten year lease on a retail shop premises.
I have a personal debt with Nat West Bank,( circa £ 4000 ), which I have not paid.
They have taken a legal charge over the lease.
The lease ends at the end of May 2016.
The Landlord wants to grant me a new lease but his solicitor says they now have
a problem with the charge over the old lease which is about to end.
Can the Landlord issue me a new lease , or how do I or the lanlord overcome the problem as I cant afford to pay the £4000.
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you with this.What is it you want to achieve please?Alex
Customer: replied 1 year ago.
Hi Alex, I would like to get a new lease.The Landlord has said his solicitor has advised him that they can't issue me a new lease.?Will use the Phone service if required.Thanks Kevin
Expert:  Ash replied 1 year ago.
How has Nattiest taken charge of the lease?Alex
Customer: replied 1 year ago.
They registered it at the Land Registry
Kevin
Expert:  Ash replied 1 year ago.
OK - and the lease is registered with the Land Registry too?
Customer: replied 1 year ago.
I am not sure but i presume it is
Expert:  Ash replied 1 year ago.
Ok - in that case the Landlord can't give you another lease whilst the charge is on the property. This is because Natwest has first charge. They need to remove it before you can register another lease.Sadly the charge needs to be removed before a new lease is granted.I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.Can I clarify anything for you about this today please?Alex
Customer: replied 1 year ago.
What i don't understand what is the position of the landlord when the lease ends ie
how can you have a charge over a lease which is no longer valid
Expert:  Ash replied 1 year ago.
Because the money is owed. That is the problem - he cant terminate with you, only with Nattiest.Does that clarify?Alex
Customer: replied 1 year ago.
Hi , so are you saying that if i walk away from the shop because the lease has finished.
1.The Nattiest still have a charge on a lease that that is no longer valid.
2. Would i be liable to the Landlord for the debt,
3. The landlord would be unable to issue a new lease to a third party, unless he pays the debt.
Expert:  Ash replied 1 year ago.
1. No, they have a charge still2. Yes you would3. CorrectDoes that clarify?Alex
Customer: replied 1 year ago.
Hi Back again,What action can the landlord take against me, for instance can he get me out of the premises whilst there is no lease.
How secure is my possession of the retail shop.
Expert:  Ash replied 1 year ago.
he can, its his property, he can give notice to quit and go to Court and seek a possession order.Does that clarify?Alex
Customer: replied 1 year ago.
What I understand is that because of the type of lease I have continuation rights unless the Landlord occupies the property himself or wants to develop it.
You said earlier that he can't issue a new lease so what position does that leave me in.
Apart from paying the debt what advice would you give me
Expert:  Ash replied 1 year ago.
Sadly you need to pay the debt. Then the lease is given back - otherwise you are stuck with being in a situation with Natwest and the Landlord. The Landlord can seek possession but would need a Court order.You wouldnt be able to oppose that as you are no longer the main tenant.Sadly you need to come to an arrangement with Natwest - this is way of resolving the matterDoes that clarify?Alex
Ash and other Law Specialists are ready to help you
Customer: replied 1 year ago.
thankyou for your help