I have a commercial loan, and due to rent arrears, Land Lord changed the Lucks,what happens now?

[masoudava]

Hi every one Please advise me if you can.

I took a business loan of 90 K from Habib bank and the balance is 26 k with no arrears but I am behind with my rent and Land Lord did not wait and sent his Bailiff changed the lucks and to my surprise in less than a week the shop is let to some one else !!

The bank had a charge on my Lease and I am not sure what is going to happen now. are they going to make me bankrupt? I have no asset nor house.Any help is appreciated.

[citizenB]

Not quite sure what you are asking help for.

 

Were you served papers prior to the LL sending the bailiff round ?

 

I am not quite sure what the situation will be with the bank if they have a charge on the Lease ?

[masoudava]

Thanks for your reply citizenB

To be honest i am not sure what is my question i am a bit lost.

The LL sent his Bailiff about 18 months ago and we agreed to pay him £500 monthly on top of current rent witch i paid but he has changed his mind now and instructed his Bailiff to collect £1000 per week or he will close the shop.

I told him I cant pay and give me time so i can sell the business,he agreed initially but after few days he changed the lucks,and did not take my calls and in two days the shop was let to new tenant.with increased rent of £9K.

My question is about the secured lone,and the way bank will demand their money and what is their legal rights.

Is it better to apply for Bankruptcy myself or wait until LL or bank do it.

Thanks

[ploddertom]

have you asked the bailiff for a breakdown of the fees he has charged you? Did the bailiff ever levy on any goods and if so what?

[masoudava]

Hi dear Ploddertom

Yes Levy was done on the first visit and over £600 for his visit plus £600 on this visit.

The levy was on my butcher shop equipments and goods.

[ploddertom]

Ask him for a proper breakdown as some of what he can charge is set within the Distress for Rent Rules, you need more than just a figure. Have you also checked to see if the Bailiff is suitably Certificated? Tools of the trade should be exempt from seizure meaning some of what he has seized has to be necessary for you to carry out your trade.

[citizenB]

So you were already in a payment arrangement and then the guy changed his mind and wanted more. Did you have the arrangement in writing ?

[citizenB]

If you are even considering BR, then I would let either the LL or the bank do it.. that way you wont have to pay the cost of applying for BR.

 

Have a word with National Debtline - they have a Business section now and might be able to offer some good advice

[masoudava]

Many thanks for your advise.

[masoudava]

If you are even considering BR, then I would let either the LL or the bank do it.. that way you wont have to pay the cost of applying for BR.

 

Have a word with National Debtline - they have a Business section now and might be able to offer some good advice

 

this evening LL agent served me with the statutory demand which is dated 05/ march/2013 , it looks he wants to BR me which is fine i was expecting it,my question is i am going over sea in three weeks time and i wont be hear to attend any court or speak to OR,I had inaf hear now separated from my wife and going away for some time.could you tell me what would happen , i don't have any asset only a old car worth less than 1000 pound.

[steampowered]

What does the Lease Agreement say about forfeiture?

 

How long was the rent overdue?

 

Did you receive a section 146 notice or any other correspondence from your landlord before he changed the locks?

[masoudava]

I had 2 shops from him since 2000 and 2004,the overdue rent started in 2010 due to illness the total of 24000 was in arrears for both shops.he send his baillis may 2011 and he did seizure of goods and inventory

we agreed to pay 1000 each month on top of currant rent ,I paid 19000 from the overdue rent.

by end of 2012 he sent his Bailiff again and he said the balance is piling up and you have to pay all in a week,i was one quarter in arrears but his figures where much higher,I tried to contact LL but he was not talking to me and told me to speak to Bailiff.any way he changed the luks following weak and same day gave new lease to someone ells with new rent of 260000 !!! my rent was 16500 per year

and the same thing on number 2 new tenant is paying 24 k i WAS PAYING 17 k.

NO LETTER OR NOTIS JUST BAILLIF.

[steampowered]

Well if he never formally terminated the lease and didn't serve a s146 notice, then I guess the lease was still valid, in which case you would be entitled to damages for being wrongfully evicted. However the landlord could set-off the unpaid rent so I am not sure this gets you anywhere.

 

If you are moving overseas in three weeks and you have no assets I guess UK bankruptcy is not a disaster. In fact it may be better if you are made bankrupt as I believe it should stop him from trying to claim the debt against assets you acquire in future. A lot of people who move abroad make themselves bankrupt in the UK to stop the debt from hanging over them. However I am not an expert on this perhaps speak to CAB or nationaldebtline.

[masoudava]

Thanks for your help i will do that.

[Lea_HTH]

You don't need a s146 when there is non-payment of rent - merely a demand for payment, non-payment, followed by peaceable re-entry (must be a clause in the lease allowing for such - but most commercial leases include them).

[renegadeimp]

I think people are glossing over things here. It sounds like the LL stole the OP's items. Notice how they said no paperwork, the "bailiffs" just came and took stuff.

[Lea_HTH]

Depends if the items had become fixtures really. Plus it appears the LL levied distress, for which he does not necessarily need a court order (it's a common law right).

 

The important point here was that the LL may have waived his right to forfeiture (by accepting part payments and levying distress), but since the OP did not seek advice before it all happened, he lost the benefit of that - he could have fought it, but it's over now, he's moving on, and any bankruptcy probably isn't going to affect him unless he comes back to the UK

Edited April 18, 2013 by Lea_HTH
added a bit