How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Thomas Your Own Question
Thomas
Thomas, Solicitor
Category: Property Law
Satisfied Customers: 7617
Experience:  UK solicitor holding an England and Wales practising Certificate.
28732269
Type Your Property Law Question Here...
Thomas is online now

i have a shop which is now closed. the bank has first charge

Customer Question

i have a shop which is now closed. the bank has first charge on it so i have the following queries:
1. will i need to seek bank's permission if I want to lease it?
2. also, can i license it instead of lease?
3. if yes, what is the maximum license term?
4. if i go down the license route is the licencee liable for the council tax and business rates or am i liable for it?
5. who looks after the maintenance of the property if i license it?
Submitted: 4 years ago.
Category: Property Law
Expert:  Thomas replied 4 years ago.
Hi,

Do you own the freehold of the building?

Tom
Customer: replied 4 years ago.


yes we own the free hold building!

Expert:  Thomas replied 4 years ago.
Drafting your answer now..

Tom
Expert:  Thomas replied 4 years ago.
Hi

Thanks for your patience.

As part of the commercial mortgage that you have with the bank there will be a condition of the mortgage that you should not lease/licence or part with possession of the whole or any part of the property without their consent.

You will need their consent. If you lease or licence the shop without it then you would put yourself in immediate breach of the mortgage and would entitle them to take enforcement action (usually involving big unreasonable fees for them).

Usually they will be fine for you to grant a lease of the premises provided that you get their consent and the rent payable under the Lease is sufficient to cover a good chunk of the mortgage repayement. They will have a department to which you can send the agreed (but not executed) lease or licence to get their express written consent.

Once you have the consent you are free to execute the Lease or licence.

.Please remember to RATE my answer OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE or above if you are satisfied that you have received the correct legal advice (even if it is not the answer you wanted to hear), otherwise I do not receive any credit for answering your question.

If you are not willing to rate my answer as OK SERVICE, GOOD SERVICE OR EXCELLENT SERVICE then allow me to assist further by replying asking what clarification you require rather than rating my answer at levels below.

If you wish for me to provide you with further guidance on any question you may have in the future then please submit a further question to the board requesting me either by my profile or by marking your question. “FAO Tom”.

Kind regards,


Tom
Customer: replied 4 years ago.


what about answers to queries 2, 3, 4, and 5??

Expert:  Thomas replied 4 years ago.
Hi,

My answer referred to a licence as well - exactly the same with a licence as with a lease; you need their consent otherwise it's a breach of your mortgage conditoins.

The terms of the lease or licence are for you to decide in your entirety (eg term, repair responsibility etc).

Usually with leases if the tenant is granted a lease of the entire building they will be given a fully repairing and insuring lease, whereby they become liable to repair the building and to pay the council tax or business rates.

Licence's are much more informal and usually the landlord retains responsbility to repair the building and pay council tax etc because you are not suppsoed to give exclusive possession under a Licence. I woud go down the lease route personally...

Please remember to rate my answer.

Kind regards.

Tom
Thomas and other Property Law Specialists are ready to help you
Customer: replied 4 years ago.

 


My husband and his parents used to run the retail shop in partnership. They also had a few properties on their names (individually) some of which got repossessed. The lender has sold these repossessed properties and have come back to them with deficit amounts.


The query I have is if they (my husband, and his parents) are bankrupt will I be dragged in as well? I don’t have any joint accounts, partnerships or properties with my husband. The only legal criteria binding us together is the marriage. Please can you advise if I can get bankrupt too if my husband and/or his parents get bankrupted by anyone.

Expert:  Thomas replied 4 years ago.
Hi,

No. If you are not party to any of the debts then they creditors will not be able to pursue your solely owned personal assets simply because of your marriage.

Tom