The Lease Issue!

[Admax]

I wonder if I may ask a question?

The issue with my outstanding lease on my business premises seems to be the hot topic of conversation and I'm a little unsure as to why it's garnering more attention than all of my other debts.

I know this may be a little simplistic, but will you allow me to draw a comparison to make my point?

1. I signed a contract with the Halifax for a personal loan for £7000 and have since paid £3,500 of that loan back.

2. I signed a contract for a lease for a total of approximately £144,000 and have since paid £56,000 of that total back.

Except for the amounts involved, how do they differ in terms of a debt owed?

Whatever advice the wonderful people on this forum give me in the near future to tackle my personal loan, surely applies to my lease. Doesn't it?

All thoughts gratefully received...

[nattie]

Re: The Lease Issue!

Possibly interest governing them. Business one might be one where the interest rate is variable rather than fixed rate as the personal loan should be.
Possibly guarantee on the business loan where none is required on the Personal Loan.
That's my initial thoughts....

[Admax]

Re: The Lease Issue!

Hi Nattie, thanks for your response.

I think you may have misunderstood my question. I don't have a business loan. In a previous thread, many people have been focusing on the premises lease I am tied into for another eleven years.

I used the personal loan analogy purely to try and ascertain why people believed the premises lease held any greater importance than any of my other debts.

Hope this makes sense....

[SXGuy]

Re: The Lease Issue!

I think you misunderstand why people were stuck on the lease more so than your other debts.

We, I included, needed to know more about it, because there may have been a slim chance you could get out of it, and thus wipe the ongoing debt.

With a loan, there is no real way to wipe the debt other than BR, or hope that you could offer a full and final settlement on the balance.

Plus, a loan is not a signed contract, its a signed agreement.

Contracts fall under the bills of exchange act, where as agreements fall under the credit consumer act.

A business lease, i would guess, would not fall under credit consumer act, because it is not a credit of any kind, its a contract to pay x amount over x amount of years.

[Admax]

Re: The Lease Issue!

Thanks SXGuy

That certainly clarifies the legal differences. I just wonder now whether that will impact on how the respective kinds of debt are dealt with.

[SXGuy]

Re: The Lease Issue!

Well im not an expert, i can only tell you my situation, but a number of years ago, i went self bankrupt, and i had a business lease.

It was over 5 years, and the total was around 190k.

The whole amount was totted up as part of my bankruptcy.

But i owned no home, and no secured debts, so slightly different there.

if theres anything you want to know in regards to how they assess the lease debt, i should imagine they will treat is as any other kind.

[Admax]

Re: The Lease Issue!

Just a quick update on the 'Lease' issue...

Nothing very exciting, but have just received a letter from my Landlords solicitor.

Basically all the letter contained was confirmation of my obligations regarding the lease and confirming (like I didn't already know) that both myself and my wife were responsible for the rent until 2023.

They finished the letter by kindly asking me to seek legal advice.

Now I've just got to find some FREE legal advice.

Think I'll give CAB a ring later and see if they can suggest anything.

[mgfboy]

Re: The Lease Issue!

I assume that you can't find someone to take over the lease???

[Admax]

Re: The Lease Issue!

I assume that you can't find someone to take over the lease???

Oh if only I could... Been trying to reassign the lease for over 12 months.

I am situated on a row of empty shops, most of which have been empty for over a year.

Unfortunately recession has hot hard in this part of the world.

[Undercover Elsa]

Re: The Lease Issue!

Hi Admax,
You could try here for a free half hour consultation with a business specialist solicitor:
http://www.lawsociety.org.uk/choosin...urbusiness.law

Shep x