Lease issue. Wife aboandoned and in South America.

[LeaseDebt]

Hi

My wife owned a limited company and had a commercial lease in one property and took on a second lease with the same landlord for a second property (to downsize and save costs). The second property was taken within the last few months.

I also took on a small unit with the landlord for a new start up.

I have dealt with the landlord at all stages. The leases for the limited company were taken in the name of the limited company but signed by me as representative / employee. No guarantor was given.

My wife decided to leave me and abandon the business and she has returned to South America, with no intention of return. I don't know where as yet.

The landlord has been informed and I have told them that I will pass on a forwarding address in South America when and if I have one.

My home is mortgaged with both her and myself on it. I'm worried about what the landlord can do that will affect me and is there a way to protect myself?

Thanks

[dx100uk]

as the property you live is still in both names even if he were to get a CCJ in the very worst case then go for a charge on the property it would only be a restriction k , which doesnt need paying nor upon home sale.

not that you need too but id be getting her off the mortgage and the deeds .

then unless a debt is in your name there is nowt much anyone can do.

you indicate a 2nd unit 'for you' or was this the downsize you mention? 

who took out what and when and are you a director too on anything or just signed in your wifes behalf on this ltd co leases

 

[Ethel Street]

5 hours ago, LeaseDebt said:

My home is mortgaged with both her and myself on it. I'm worried about what the landlord can do that will affect me and is there a way to protect myself?

Are you still able to pay the mortgage on your own? As long as it's still being paid the lender won't be bothered that your wife is now in South America but as dx100uk advises removing wife from mortgage could help protect you from a landlord claim. However I'm not sure how easy that will be in practice. Lender will likely want to carry out an affordability review of your finances before agreeing and may require you to apply for a new loan.

You and your wife are joint owners of the house? Do you own it as ‘joint tenants’ or ‘tenants in common’?   

/assets/static/govuk-opengraph-image-dade2dad5775023b0568381c4c074b86318194edb36d3d68df721eea7deeac4b.png

Joint property ownership: Overview - GOV.UK

WWW.GOV.UK

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Check if you're a joint tenant or tenants in common. Change from joint tenants to tenants in common, or tenants in common to joint tenants

 

 

As a separate issue to the lease question, if you want to sell the house in the future and your wife is still named as joint owner and joint mortgagor/borrower it could cause you a lot of problems if you can't find her or she won't co-operate. So explore all the possibilities for removing her from mortgage and deeds as soon as possible.

[LeaseDebt]

Thanks @dx100uk

Not sure how to take wife off deeds. I guess a call to the building society will be a start to this. If there are any links you have then point me in the right way.

I wasn't a director and just signed on her behalf.

The unit in my name is my responsibility. Took on to help with the extra business due. This has left me in a bad position though and liable for the full lease. Well, at least 12 months as there is a break clause at end of first year. I guess I could try to negotiate on this to settle.

If I walk away from it and the leaseholder pushes. I think they may have a responsibility to mitigate losses by re letting But not sure. 

 

Thanks @Ethel Street

Interesting link on the joint / tenants in common. I don't know which we are but wonder if I do a Land Reg search if this will show?

Will look at what is needed to take wife off deeds.

[dx100uk]

only use the .gov.uk land reg site about £8 i think, others are not .gov and can be VERY expensive and take a long time.

i believe there are FAQ's there too upon how to remove others from deeds too.

dx

 

[Ethel Street]

Married couples buying a house together are usually 'Joint Tenants' but Land Registry is where to check.,

[LeaseDebt]

Thanks both 

[stu007]

Hi

I also think to be safe you also need to do a bit of Due Diligence on the Company that was setup by your wife just to be safe so I would advise doing a Companies House Check. Either input the Company Name or Company Registration Number to get the information. as you want to see who is actually Named as the Directors for that Company and that your name is not there as a Director.

on the link below do the following:

1. Click Start Now.

2. Either enter the Companies Full Name or Registration Number

3. Have a good read of that main webpage.

4. Then Click on  'People' and have a good read on that to see who is a Director in case you have been added as a Director

5. On the link have a good check through it as you should be able to download different info under ;Filing History' for the company.

/assets/static/govuk-opengraph-image-dade2dad5775023b0568381c4c074b86318194edb36d3d68df721eea7deeac4b.png

Get information about a company - GOV.UK

WWW.GOV.UK

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Get company information including registered address, previous company names, directors' details, accounts, annual returns and company reports, if...

 

[LeaseDebt]

Thanks

Checked and I am not a director.

I have a commercial lease in my name.

Was only in the property 2 months before circumstances beyond my control meant business closed and i became unemployed.

Lease is in my own name and not limited co.

Have contacted the landlord to explain the above and they said they are not prepared to accept the keys and want to return them to me (I handed keys to the landlord).

I have mailed rather than trying to avoid them explaining the position again.

I wonder, in the event they want to pursue this in court, will they need to show that they have looked to mitigate the loss by re-letting the property?

Thanks

[BankFodder]

Yes

I believe that this relates to your existing thread.
It is very unhelpful to start two threads on the same issue

[dx100uk]

threads merged

dx

 

[BazzaS]

On 12/09/2023 at 08:04, Ethel Street said:

Married couples buying a house together are usually 'Joint Tenants' but Land Registry is where to check.,

The legal interest (the title held at LR) is ALWAYS a joint tenancy if held by more than one person.

It is the beneficial interest that can be tenancy in common or a joint tenancy, and the LR may not have that information.

 

I've just checked, and if the LR is served a notice to sever the joint tenancy of the beneficial interest, converting it into a tenancy in common, they'll add a notification that :

"No disposition by a sole proprietor of the registered estate
(except a trust corporation) under which capital money arises is
to be registered unless authorised by an order of the court."

 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1180579/SEV__2023-08-29_.pdf

Edited September 14, 2023 by BazzaS

[Ethel Street]

Yes, that's how you find out from the LR entry whether it is held as JT or TIC. When registering a joint title you are required to say whether you are registering as JT or TIC.

Limitations of LR information explained on LR blog.

 

What kind of joint ownership do I have?

HMLANDREGISTRY.BLOG.GOV.UK

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News and updates from HM Land Registry

 

[LeaseDebt]

Thanks

Sorry about the late reply. Been working away.

On the lease.

It was taken as part of the downsize of business and in my own name.

I have asked the agents to landlord to help with this and understand they don't really need to.

Latest reply from them was '

Unfortunately we cannot accept the keys for Unit 48 as it is in your personal name, and the Landlord expects you to abide by the terms of the clause.

 

You have signed for a three year agreement.

The agreement does allow for a break at end of year 1.

I currently have great credit and have never had issues with debt. I would like to avoid issues but not really sure of the best way to go to resolve the rent issue.

Any tips?

Thanks

 

[LeaseDebt]

Hi again.

Was wondering if there was any advice on my last post above?

I would like to approach the landlord with a possible fix (Not sure what this is yet) but wonder if there is a best way to go about this and hopefully avoiding court, CCJ's etc?

Thanks

[Nicky Boy]

Find them another tenant?

Or, are you allowed to sublet?

Offer a lump sum to terminate?

[LeaseDebt]

Thanks

There is a break option after the first 12 months.

I was thinking of offering them the 1 years rent as lump sum, but payable over say a 6 month period.

They are popular small units and easily let.

Not allowed to sublet.

I will think and look to approach them.

[honeybee13]

Thread reopened.

HB

[LeaseDebt]

Hi all. It's been a while since I posted on this matter. I am wondering what the landlord and agents are up to.

I have been in touch with them and the billing departments (As they are still sending out invoices for the personal lease). I have explained that

1. I am now unemployed and although have limited savings, it looks close to my having to claim some sort of benefits unless I can find work.

2. The keys are back with them and I will not be returning to the property.

3. When they have a final statement, I would be happy to look at negotiating a full and final settlement.

No reply at all from them.

I understand that I am on the hook for this. But to me, as I am unable to find a new tenant for them, they, are bound to mitigate their potential losses by re-letting the unit.

Am I right here or is this pie-in-the-sky thinking on my behalf?

Thanks again for your help.

 

 

[Nicky Boy]

I presume when you say you "got in touch", it was in writing?

If so, I think you've put the ball firmly in their court and simply wait for a reply.

 

Also, I'm no legal expert, but as you say, mitigation seems to be an important aspect and could bite them if they try to take this further.

Especially if this is the case...

On 12/10/2023 at 00:09, LeaseDebt said:

They are popular small units and easily let.

Just a thought... Do you have a friend who could make an enquiry about rent/availability of your specific unit?

Keep email records obviously. They may be useful later.

[LeaseDebt]

Thanks

Yes all communication has been by email.

I was thinking of a 'friend' making an enquiry about the unit being empty.

I will get onto that.

Thanks again

[LeaseDebt]

Hi All.

I have now received a Notice OF INTENDED LEGAL PROCEEDINGS  from the solicitors acting on behalf of the landlord in this matter. I will scan and upload the same soon. I wanted to ask before though.

1. I returned the keys to the landlord around 28 August 2023 and explained that the business was no longer trading and that I was not in a position to pay the rents. The landlord responded to this by email 30 August 23. Not happy and wanting to return the keys back to me. This did not happen.

2. 20 October, 2023. I emailed the landlords again to confirm my inability to pay any rents due to unemployment and asking if there was a solution to resolve this matter. They replied this was doubtful.

3. 12 Jan, 2024. I emailed again to further confirm that the keys had been returned and that I would likely need to claim benefits soon.

My question is this.

I know and agree that I should pay the landlord some monies but I think I would like to pay to the date I handed the keys back (28 August 23).

I know they will probably want more.

But I also think that the landlord may have had a responsibility to mitigate their loss rather than leaving me to stress 3 times I can not pay.

Instead leaving it for several months later before using solicitors and threat of court action.

Am I being silly?

Thanks

 

[LeaseDebt]

Hi all.

Just wondering if anyone can help out with this at all?

Sorry to be a pest.

Thanks

[Nicky Boy]

On 18/03/2024 at 09:45, LeaseDebt said:

I have now received a Notice OF INTENDED LEGAL PROCEEDINGS  from the solicitors acting on behalf of the landlord in this matter. I will scan and upload the same soon. I wanted to ask before though.

Maybe upload the doc first?

Also tagging @lolerz who may be able to advise on this one?

[lolerz]

Can you scan up a copy of the lease (redact the location and any personal information for you but not the landlord) and and a copy of the letter you've received please.

Upload <-- Guidance here.