Commercial lease, break clause and much more

[Goldlady]

I had not intended to post about this on CAG as it is a commercial issue, however as it has started to hijack another thread I am starting my own. I guess what happened to us all those years ago was the beginning of our financial problems so in some ways it is relevant.

 

Anyway, this is a brief synopsis of the story so far:

 

 

In 2001 Goldlady and OH moved into commercial premises. Landlord was friend/client of many years. 8 year lease drafted and before signed he was offered megabucks to sell building so then introduced 18 month break clause. As a result he issued side letter to lease saying he would pay us megabucks, if he exercised break clause, regarding improvements made to building. Also said we would get 4 months notice (lots of machinery and stuff). Lease was signed about 9 months after we moved in and had done all the work.

 

18 months after commencement we got solicitors letter terminating lease - one month's notice. We were 2 months in arrears with rent due to foot and mouth and he had agreed to let us be in arrears. We then asked for confirmation that we would get our money. None forthcoming. Many arguments with him and solicitor which resulted finally in bailiffs changing locks and virtually destroying our business.

 

Have just won stage one of court claim where he tried to say side letter was not valid as not referred to in lease. Our barrister found a case 'on all fours' re Tootall Clothing which resulted in a victory for us just last week at county court.

 

Interestingly I am 99% certain he was not VAT registered - he was a client of mine after all. And if so we were actually in advance with the rent as he was charging VAT on it when he shouldn't have been. Also as side letter found to be valid he had agreed to give four months notice which means he locked us out of the building before the notice period had expired, and if I am right about the VAT then we weren't in arrears (agreed or otherwise) with the rent. He also then tried to claim for dilapidations of 10k when he actually demolished the building six months after he evicted us:shock:. A friend took photos of the demolition work hiding behind a newspaper with a hole cut in it:grin:

 

Coming to the High Court shortly, if we can raise enough dosh to keep up the fight. It is scary how much it is costing and I waited until a week before it was statute barred - then I thought I am not letting him get away with it. I will find the money somehow:rolleyes:

 

So there you are. Goldlady may soon be rich, or even more skint:shock:

__________________

[TheChancellor]

I had not intended to post about this on CAG as it is a commercial issue, however as it has started to hijack another thread I am starting my own. and had done all the work.

 

 

Don't know who lead you astray with this one:D

 

The VAT payed seems to be the key issue.

Can't you simply state that the rent was paid fully & even in credit as he shouldn't have been colecting the VAT & let him prove otherwise to the court.

 

Obviously you need a second string to your bow.

[MrShed]

I blame you for everything Chancellor

 

Dont know if I am missing something here, but wasnt aware that you needed to be VAT registered when your business was taking below a certain limit...?

[TheChancellor]

I blame you for everything Chancellor

 

Dont know if I am missing something here, but wasnt aware that you needed to be VAT registered when your business was taking below a certain limit...?

 

You sound like the missus, Mr S

 

You are indeed correct - the VAT threshold is currently £67,000.

 

GL & I are in mid-conversation on this one due to previously hijacked thread "Break Clause".

 

The main point being that the LL issued Notice stating that GL was in rent arrears.She contends that as he was adding & collecting VAT after he had de-registered, then she was actually up to date with the rent or even in advance as these "VAT" payments should have gone into her rent account as no VAT was due.

[MrShed]

Yes but if he hasnt registered, he can still charge VAT - cant he?

[TheChancellor]

Yes but if he hasnt registered, he can still charge VAT - cant he?

 

No - criminal offence.

He needs a VAT number as he's only a collection agent for C&E.

[MrShed]

Ah OK

[Goldlady]

Thanks for the input here guys.

 

I suggested to my solicitor that we go to the court on the basis you suggest Chancellor, ie putting him to strict proof that he was VAT registered. As said on the hijacked thread my solicitor is writing to ask his solicitors for proof that he was VAT registered, but I have raised the question that if he swears on every religious book in the world that he was then will they just believe him?

[MrShed]

No - he will have to produce proof that he is VAT registered(presumably some documentation from HMRC).

[TheChancellor]

Thanks for the input here guys.

 

I suggested to my solicitor that we go to the court on the basis you suggest Chancellor, ie putting him to strict proof that he was VAT registered. As said on the hijacked thread my solicitor is writing to ask his solicitors for proof that he was VAT registered, but I have raised the question that if he swears on every religious book in the world that he was then will they just believe him?

 

I wouldn't have thought he would be stupid enough to commit perjury on something which can be so easily checked.

[Goldlady]

He thinks he is above the law:D as he is 'almost titled', rich landowner.....

[TheChancellor]

He thinks he is above the law:D as he is 'almost titled', rich landowner.....

 

Oooh Goody.

 

They'll love him in the showers in Durham nick.

 

Pass the soap.......................................

[Goldlady]

ROFLMAO - what a thought!!!

[MrShed]

So where does that get heard GL? Is it at Newcastle law courts?

[Goldlady]

Yes, but we haven't got a hearing date yet.

[MrShed]

Oooo let me know when - might come along!!

[Goldlady]

OK, will let you know. I need to get the money to pay the barrister first;)