Landlord may go bust what happens to me?

[pontypool]

My business operates out of a commercial property and the landlord is in court today for the third and final time about money he owes to the Revenue (personal tax) and he says it can't be adjourned again.

If they declare him bankrupt how quickly can assets be seized? I am wary of paying the March rent and then finding that they change the locks this week!

Or do those kind of proceedings take a lot longer to sort out?

Helpfully I am also currently skiing and so could I come back and find someone has sezied my computers and desks that are nothing to do with him?

[lestag]

pontypool said:

My business operates out of a commercial property and the landlord is in court today for the third and final time about money he owes to the Revenue (personal tax) and he says it can't be adjourned again.

If they declare him bankrupt how quickly can assets be seized? I am wary of paying the March rent and then finding that they change the locks this week!

Or do those kind of proceedings take a lot longer to sort out?

Helpfully I am also currently skiing and so could I come back and find someone has sezied my computers and desks that are nothing to do with him?

whats the lease terms?

[pontypool]

it is fairly informal as the landlord is a personal friend of my business partner, but we have been there for 8 years but there is no formal written lease agreement, merely a series of emails about who gets what for how much...

[surrey7er]

If you can afford it, might be a good opportunity to buy the property for a very low price??

[pontypool]

yes, i had considerd buying it, but pratcially how quickly does asset seizur take? will i be back from skiing before the stuff hits the fan?

[surrey7er]

You 'should' be ok... But you're best off talking to your pal to find out how things are progressing.

[davidjpowell]

If your mate is made bankrupt his assets would be transferred to the Ofifical Reciever. I preumse that you have no formal written document from what you say and you have been there 8 years so have protection from the Landlord and Tenant act 1954.

The OR would sell I suspect subject to your occupation. Someone should make sure that you sign a lease at some point to ensure that you are hooked up for a decent term.

If they want you out they have to give you a minimum of 6 months and max of 12 months notice, and you can resist depending on grounds.

You will have to pay the March rent. As long as he has not gone bust by then you would be complying with the terms of the lease.

[superlightr]

Contact the IR to ask their advice?

[Chrisgr31]

Listen to what David says. He knows what he is talking about. You need to pay the March rent but you need to ensure you pay it to the right person, who by then may not be your current Landlord.

You will need to sort out a formal lease and ensure you take proper advice from a Chartered Surveyor and lawyer when you do so. You want to retain the proptection you have under the act.

[davidjpowell]

surrey7er said:

If you can afford it, might be a good opportunity to buy the property for a very low price??

One other thing, I believe that the OR can reverse transactions if the Bankruptee has sold below Market Value against the creditors interest.

[lestag]

davidjpowell said:

surrey7er said:

If you can afford it, might be a good opportunity to buy the property for a very low price??

One other thing, I believe that the OR can reverse transactions if the Bankruptee has sold below Market Value against the creditors interest.

if it has a mortgage on it (bound to), the bank (creditor) will have a legal interest in it so would block any sale that was not in its interests. My nephew had that happen on the day before keys were handed over for a house....