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Alex J.
Alex J., Solicitor
Category: Property Law
Satisfied Customers: 3655
Experience:  Two years conveyancing experience.
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I guaranteed a 12 year lease company of which I was a

Resolved Question:

I guaranteed a 12 year lease for a company of which I was a director. When that company was wound up I had to continue paying the rent. The lease ended in September but the landlord wouldn't reply to me. Now he wants me to pay rent after the lease expired. Is this legal?
Submitted: 1 year ago.
Category: Property Law
Expert:  Alex J. replied 1 year ago.
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Do you have the exact wording of the obligations you guaranteed? Has notice been served on the lease? The liquidator must have done this?
Kind regards
Customer: replied 1 year ago.
The Landlord covenants with the Guarantor that he will notify the Guarantor in writing within 21 days of being informed of the facts bringing the liability period to an end.
This hasn't happened. I don't think the liquidator did anything as the lease was regarded as a liability not an asset
many thanks
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Does it mention anything about Guaranteed Obligations? Or have a definition of the same?
Customer: replied 1 year ago.
If the lease is disclaimed and the landlord does not require the Guarantor to accept a new lease of the Premises the Guarantor must pay to the landlord on demand an amount equal to the difference between any money received by the landlord for the use and occupation of the premises and the lease rents for the period commencing with the date of the disclaimer and ending on whichever is the earlier of the date 6 months after the disclaimer and the end of the term
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Presuming you have not been required to accept a new lease, the lease must have disclaimed by the liquidator at some point - can you contact the liquidator and confirm this? Your guarantee obligation requires you to pay the unpaid rent plus rent for a period of 6 months after the date of the disclaiming of the lease. The landlord has not other right to claim the money after this point.
Customer: replied 1 year ago.
I have been paying for 7 years and occupying the building but without any documentation.
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. You will have to keep paying if you occupy the building. If you want to serve notice to terminate on a rolling lease then you will have to serve notice in accordance with how frequently the rent is paid. Is it paid quarterly?
Customer: replied 1 year ago.
No. weekly. And I want to go
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Why dont you negotiate a notice period with the landlord - your guarantee has stopped (six months after the disclaimer notice). I suspect you may have to pay one months notice.
Customer: replied 1 year ago.
sorry - what is the disclaimer notice? was that when the company ended?
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. A liquidator is entitled to disclaim burdensome or onerous assets for the benefit of the creditors. This may include a lease - this would have been done by the liquidator to the landlord.
Customer: replied 1 year ago.
Ok. I'll have to look into that. Thank you for your help so far
Expert:  Alex J. replied 1 year ago.
Thank you.
If I can assist any further please do not hesitate to contact me.
Kind regards
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