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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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My wife and I moved to Mallorca in April this year. My wife

Resolved Question:

Hi, my wife and I moved to Mallorca in April this year. My wife has a hair salon which she decided to continue to operate and have a manager take care of the business.
The manager has been really poor at keeping us informed of business operations, trading figures etc and it seems we are now losing money. We therefore decided to place the business on the market, which is valued at £60k. The selling agent was due to take photos etc today Mon 8th.
Unbeknownst to us the lease on the business actually ran out quite some time ago. As we now live abroad we dont have all the usual contact with the owner of the building etc.
Within the last few hours we've heard on the grapevine that the manager we appointed has actually signed a new lease on the business with the owner behind our backs!! Surely, she cant do this can she? Do we have a legal case here at all?
Please help. Thanks, ***** ***** Alison Helliwell.
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.

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

Just to check, is this a uk law question or EU?

Customer: replied 1 year ago.
My wife's shop is in Leeds, UK.
Expert:  Ash replied 1 year ago.

The Salon, whose name is ***** ***** please?

Customer: replied 1 year ago.
It's under my wife's name.
Expert:  Ash replied 1 year ago.

Ok - you need to approach the Landlord and ask.

If its not then I would suggest your wife signs a new lease to make sure it is locked up.

If there is a new lease then your wife needs to check the name, if it under the name of the Salon then you are ok.

If not then she needs to approach the Landlord and ask why there is a new lease under the name of the manager.

If there is a lease under the name of the manager then all she can do is sue the manager as a result of this. The Landlord should be invited as to the circumstances of the lease - whether it was his understand it was on behalf of you as Salon owner. If so then it can be transferred to you.

If not, then any claim would be direct against the manager.

Can I clarify anything for you about this today please?
Alex

Customer: replied 1 year ago.
Ok, thanks.What would we actually be suing the manager for?
How would we calculate the amount?
How do we go about this?
Expert:  Ash replied 1 year ago.

You would be suing the manger for breach of contract because they have failed to act with all good faith.

They have taken the business.

You could claim for loss of profit, if the manager is taking the business and/or an order that the lease is transferred to you.

Does that clarify? Alex

Customer: replied 1 year ago.
The manager doesn't have a contract in place as such, just a verbal agreement.
Could we sue her for the price the shop is valued at £60k?
Expert:  Ash replied 1 year ago.

Ah no, your wife needs to get a lease. Then she will be ok

Does that clarify? Alex

Customer: replied 1 year ago.
The problem is that the lease expired a couple of years ago. It was originally sublet for 6 years in 2009 from a former company whom moved their business to another premises. The business is called M&M Blinds, we have continued to pay them via direct debit on the 1st of every month for the rent (last payment Aug 1st 2016). The rent then is transferred by M&M to the owners of the building.
The original owner of the building died and was passed onto her children.
Does the fact that we have continued to pay the rent give us some form of contract and that despite the lease has ended we have rights still? As far as we were concerned, everything was just on a rolling basis.
Expert:  Ash replied 1 year ago.

Ok - but then you either need to get the lease signed.

If there is no signed lease the Landlord can get you out at any time.

Therefore you MUST get a lease.

Does that clarify? Alex

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