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Voluntary liquidation(8 Posts)
Just wondered if anyone with legal knowledge could help. My mum passed away last August leaving in Trust a business property. I had been dealing with this for a long time before she passed away. tThe property has been left to me. Her Will should go to probate shortly.
The tenants who occupy the premises (they have been there since 2013) are always late paying their quarterly rent. The property is managed by Agents who we have a good relationship with. The tenants were late again this time and the Agents sent the Bailiffs in a week ago when the tenant told them the cheque was in the post. Since then we have found they are in voluntary liquidation.
Just wondered if anyone could tell me what happens next. How long approximately before we get our property back. I realistically think there is no chance of us getting our rent for this quarter but I do have the payment they had to make before occupying the premises. Its in an ISA. Will I be able to keep that as they have not paid the rent. Would be helpful if we can as it will help with any legal/agent expenses.
Finally will it take a long time getting them to vacate the building. Liquidators have been appointed.
Its all new to me and would be grateful for any words of wisdom of how things might work.
Contact the liquidators. Take legal advice on the lease - you may be able to forfeit the lease and take the property back.
I suggest you take a look at www.bridgenewland.co.uk/latest-insolvency-news/landlords-tenants-and-liquidation which has some good information about what will happen. If it is a members' voluntary liquidation you should get paid in full (including statutory interest on the rent) but you may have to wait.
The page to which I link mentions the liquidator disclaiming onerous property. That is the process that terminates the lease so they don't have to keep paying rent. The liquidator will usually do that as quickly as they can but there are a few things they have to do first, including valuing the lease to confirm that it has no resale value. You shouldn't have to wait too long for them to vacate your premises.
Thank you Bridge that's really helpful. Interesting reading. Hopefully the agents will be back in touch after Easter but at least DH and myself are a bit more clued up after reading the article.
This was the thread I started last week and got some good advice. Just a bit more advice needed please. The company who rent our property went into voluntary liquidation at the end of March according to our agents. However, I drove past the property today and it seems they are very much still trading. Quite a few people in the yard, some polishing the vehicles they use for their business (which is actually vehicle/transport based), uniformed driver etc. We have a meeting with the property agents who handled the rent etc on our behalf on Friday but just wondered if they are being liquidated how on earth are they still trading/working.
It sounds like the liquidator is trying to sell the business as a going concern. Normally selling a business as a going concern will get a better price and provide a better outcome for staff. The company will stop trading and cease to exist but the business will continue under new ownership.
Bridge do you think the agents should have informed us? I know its only a week since they found out and Easter has been inbetween. We are seeing them on Friday. If the business is sold on as a going concern wouldn't we need to negotiate a new Lease with whoever takes it on and agree to them taking it on. Its a 15 year lease and we are two and a half years through it at this time. Rent review is at five years. As I say, maybe the agents will have all the info on Friday but your input has been a great in helping us understand.
Whether a new lease would need to be negotiated depends on the terms of your existing lease. It may well contain a clause allowing the tenant to assign or transfer the lease with your consent. If it does have such a clause you cannot refuse consent unless it is reasonable to do so. That would allow the liquidator to sell the lease to the new owner of the business without any need for a new lease.
You have a meeting with the agents on Friday. So far nothing has happened that needs you to take any urgent action as far as I can see. This is a voluntary liquidation so the business is solvent and will pay the rent. The liquidator has not yet disclaimed the lease and, if there is a realistic prospect of selling the business as a going concern, they won't disclaim it. They will want to sell the lease to whoever takes over the business. Provided the agreement allows them to assign the lease your only involvement will be to consent to the assignment. So there is nothing you need to do at this stage. I am therefore not surprised that the agents are not rushing to inform you.
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