Cafe Sale: tenants have signed new lease with landlord before paying us/signing contract of sale

[sweetpeaorchestra]

We are selling the lease to the cafe premise we own and desperately need the sale to go through asap due to huge (company) debts. DH and I are both directors of our company, I handle admin and have a part-time job elsewhere.
The lease is around 50k and effectively buys the fixtures and fittings, which are expensive.
We had an offer for 30k followed by 5k instalments. We then had a separate offer for 45k in a lump sum.

My preference was for the latter as I'm weary of potentially gambling 20k if the buyers can't repay this. I can't see how we'd enforce it without expensive legal fees.

DH preferred the guys offering instalments, I arranged for him, buyers and landlord to meet. During this meeting the landlord and buyers signed a new lease with DH's implicit agreement. DH told me to draft a sale of contract, send all details over and the verbal agreement seemed to be they'd pay this 30k straight after that.

I had already expressed a preference for the other buyer and that I would prefer to go through solicitors. But seeing as they'd all reached an agreement and we are desperate for any cash, was ok to proceed. I emailed to confirm details of the payment arrangements with them and for the contract of sale.

This was a week ago and I've had nothing in writing except it should be "today" "soon". I chased yesterday to say could they confirm they were proceeding, as we do have another offer.

I've had a pretty rude email back from the Managing Director of another company (who presumably owns the buyers? No idea of the set-up) who stated they were waiting on the wording of the contract that they are drawing up.
But since they already had the lease (which they were "surprised" happened on the day) they wouldn't want another buyer involved as already having signed one "things could get interesting."

I've since had a request for our bank details "if that puts your mind at ease" but nothing to confirm how much is to be transferred.

I'm arranging for the 45k buyers to meet the landlord to keep our options open. I don't want to over-complicate things and waste time if legally, they now have the lease and for all I know will stick to their word.
But I'm incredibly uneasy, I dislike how they've communicated, I feel they've stalled and I never wanted instalments anyway.
DH is too stressed by this all and is handing over to me.

I am going to try and get legal advice tomorrow, and have not communicated further with these buyers. Should I email with bank details and ask for confirmation of what they are paying? We still have a lease until 2032, but would their new one render that void?

Thank you for any thoughts as we urgently need to finalise and what with working elsewhere I barely have time to attend to this.

Don't give out your bank details until someone, preferably a solicitor, has checked out this so-called buyer and have made sure you're going to get the agreed amount, through the proper channels, preferably through their solicitor. This could be a money laundering scam - one buyer gives you £X, the other offers more than £X, you give back the money to the original buyer... money laundered.

During this meeting the landlord and buyers signed a new lease with DH's implicit agreement

Are you sure it was a new lease and not maybe heads of terms? Has the Landlord agreed a surrender of your lease?

Be cautious about instalments. You might get the £30K but once they've got your stuff, there's no motivation to pay the rest. Cash upfront is my advice!

There isn’t a surrender of lease. They have the same as us, a two page template from the Law Society with rent terms signed by landlord.

Thanks for the advice, I think clearly this is why things need to go through solicitors so I will have to push for that.

For goodness sake! The first error was agreeing to instalments and the second one was having no solicitor!

@Quitelikeit I know, I didn’t agree to either. I am very angry with H but obviously I should have put my foot down earlier. I was made to feel I’d be delaying things and creating unnecessary expense for a done deal I wasn’t party to. Now I have to deal with the mess!
I wonder how likely I can even get urgent from a solicitor a week or so before xmas

Did DH sign anything? Are you still in occupation? Have you handed back the keys?

In your situation I would expect no new lease to be be granted but for your lease to be assigned to a buyer. While your lease is in place then the landlord has no rights to occupy the premises. The landlord cannot grant a new lease ( that isn't subject to your lease). If they have supposedly signed a new lease to start while your lease is ongoing then the buyer can sue the landlord for failing to provide the premises. But it can't invalidate or surrender your existing lease.

You need to be aware that your lease could be surrendered and ended early through a written agreement or if you hand back your keys. If this happens then this leaves you much more vulnerable. I think you need to check if DH has done anything like this.

If I were you I'd try citizens advice, and hold my ground with these buyers and landlord. See the other buyer and let everyone know that you still have the lease and will not be giving up occupation until and unless this is all resolved suitably. Get all the money before you leave the property.

Good luck!

@snackprovidersupreme thank you this so helpful!
DH has not signed anything or handed over keys. We are still occupying and have the other potential buyers viewing today.

When we purchased our original cafe (properly, through solicitors) it was done as you said: we were added to the previous tenant’s lease, so purchasing that as it were.

I will try CA. As ideally I want to stand my ground given the stupid instalment arrangement (and the buyer’s “calm down dear” email to me when clarifying the terms/getting an update!)
Thanks

Get a solicitor that deals with commercial leases. As pp says this should be an assignment of your existing lease