Commercial business lease - Letter before Action - Negotiation not going well

[Restart]

Hi

Wondered if I could get a little advise please.

I entered into a commercial lease (3 years) and within a few months I had to leave as the business I was trading with collapsed.

I returned the keys to the landlord and explained the situation and no money, also likely to go on benefits but the landlord stuck to their guns.

They have now instructed solicitors to send letter before action claiming just over £4000.

The lease was mine and so the debt. I know this.

I have emailed the solicitors twice to explain I am out of work and that with help from family I could offer a full and final settlement figure of £1500 or £10pw. This was countered by them with an offer to reduce the debt by £400, or pay off the amount over 12 months.

I went back with an improved full and final offer of £2500 or £20pw. This has been rejected with the comment 'papers ready to go to court'.

I have no hope of paying the £4000 and so it will have to go to court. Pity as I have no debts otherwise but not working is a killer.

I wondered if they take me to court, could I ask for mediation?

I also think that taking me to court will result in a pretty much nothing per week payment from my benefits. Are companies just pushing ahead with action even if a better offer is on the table?

Thanks for your help.

[honeybee13]

Hi.

I've moved your thread to the Residential and Commercial lettings forum. People should be along to advise later.

HB

[dx100uk]

Topic title amended for clarity

 

you get mediation if you both parties agree.

but again you might hit the same brick wall.

were you a sole trader or was it a ltd company?

dx

 

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[Restart]

Thanks for the reply.

I was a sole trader

[AndyOrch]

Commercial Landlords are legally allowed to sue for early cancellation of the lease. You can only surrender your lease if your landlord agrees to your doing so.

They are under no obligation even to consider your request and are entitled to refuse. You cannot use this as an excuse not to pay your rent. Your landlord is most likely to agree to your surrendering the lease if they want the property back in order to redevelop it, or if they wants to rent it to what they regards as a better tenant or at a higher rent.

There are two types of surrender:

Express surrender in writing. This is a written document which sets out the terms of the surrender.

Implied surrender by conduct. (applies to your position)

You can move out of the property you leased, simply hand your keys back and the lease will come to an end, but only if the landlord agrees to accept your surrender. Many tenants have thought they can simply post the keys through the landlord's letter box and the lease is ended. This is not true and without a document from the landlord, not only do you not know if the landlord has accepted the surrender, you also do not know on what basis they have accepted and could find they sue you for rent arrears, service charge arrears, damage to the property and compensation for your attempt to leave the property without the landlord's agreement. Unless you are absolutely certain that the landlord is agreeable to your departure, you should not attempt to imply a surrender by relying on your and the landlord's conduct.

 

[Restart]

Thanks No permission was given to leave the property. I accept liability.

I was just hoping that I could limit the damage / court action by negotiating a lower settlement with the landlord.

I am negotiating with my ex (commercial) landlord's solicitor for a debt I owe for rent. This has been going on for a little while and I expect they may go ahead with the court action they threaten.

I wanted to ask however,

In the event this action goes ahead, I think will have a response pack sent to me from the court, along with the claim.

Google tells me that a section of this response pack is a 'Admit the claim and ask for time to pay'.

Would this time to pay, if accepted also mean a CCJ registered against me?

Thanks

Edited May 8 by dx100uk
no need to use @username.

[AndyOrch]

Topics merged please do not start further topics on the same issue

Yes it would be registered as a CCJ.

 

 

 

.

[AndyOrch]

If you were to try try to reach a settlement it must be done preferably  before allocation of the claim or better still before they issue the claim.

[Restart]

Thanks  no official claim has been issued as yet.

The solicitors stated that they 'have the paperwork ready' in case I don't / can't pay up.

I have sent over a last attempt to settle but they seem to be playing hard ball.

My offer isn't far off what they are asking for and the result of them not agreeing will mean a CCJ for me, but them getting their money many years when I submit my income/expenditure form (Just a part time job).

Guess will have to wait and see.

Thanks again

Edited May 8 by dx100uk
no need to use @username.

[AndyOrch]

Retain all your paperwork with regards to trying to settle...come back if /when you actually receive a Letter of Claim or Letter before Claim.

Edit I see they have actually issued one... come back if they issue a claim.

 

 

 

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[Restart]

Will do

Edited May 8 by dx100uk
no need to use @username.

[Restart]

Good morning.

I just wanted to check something please. The other side have moved slightly and negotiated a full and final offer price to end this matter. I am happy with this.

However, I want to make sure this is the end of the matter and am emailing the following over to them prior to payment. Is this enough to ensure they can come back for nothing else?

Thanks

--------------------------------------------------

Dear Sir.

 

With regards your last email below.

 

I am pleased to agree to the full and final settlement figure given below.

 

Can you confirm this payment will be in full and final payment with no further claim to be brought against me in this matter?

 

Best regards

[AndyOrch]

2 hours ago, Restart said:

Can you confirm this payment will be in full and final payment with no further claim to be brought against me in this matter?

Dear (insert Name)

Will you please confirm in writing payment of £xxxxxx is accepted as full and final payment of rent arrears for commercial lease (insert dates) for rental on  property (insert address) and please provide a receipt of payment.

Yours Sincerely 

[Restart]

Thanks

[AndyOrch]