Commercial Lease

Oct 07, 2005 13 Replies
P

I currently have a Hotel on Freehold, run by four partners (family affair) under the guise of a Ltd company, Two of the partners want away and we have only been here 2 years so it is proving difficlt to borrow extra cash to buy them out, can anyone advise on the company (which owns the freehold) leasing out the building to me, for approx £250 000 whilst I still have a share in the company that owns the building, their is currently a mortgage of £345000 on the building with a value of £725000.



I hope this makes sense to someone and feel free to offer all advice



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P

You wont be able to lease out the building without the permission of the mortagor.

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J

In message , Peter Saxton writes

Yes, I suppose the mortgagor would want to give permission but as the mortgagor is also (apparently) the freeholder then I think that can be taken as read.

More importantly I expect it would be the mortgagee who would want to give permission assuming that they have been sufficiently scrupulous in the wording of their legal charge.

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C

x-no-archive: yes

how can you have a freehold AND a lease, on the same property?

Also, anything to say how long the 'partners' have to leave their cash in the firm?

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P

It doesn't say that the mortgagor is also the freeholder.

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J

In message , Peter Saxton writes

No explicitly, which is why I said 'apparently'. But I still think you have got your mortgagees and mortgagors mixed up.

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J

In message , Peter Saxton writes

Dont worry, it happens to us all!!!!

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F

Which IIRC cannot be unreasonably withheld.

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P

Wouldn't it be reasonable to refuse a lease that would reduce the value of the property being used as security?

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J

In message , Peter Saxton writes

Hey Peter, your slipping again! But assuming Fergus has also got his mortgag ors and ees confused then you are right. The Mortgagee would have every right to refuse the granting of a lease on the grounds you describe.

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P

I'm slipping? You mean I got something right for once?

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J

In message , Peter Saxton writes

Yup!

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F

Moi ? How could you suggest such a possibility ?

In fact, I wasn't confusing them, but simply stating the obvious which ...

... may indeed be superfluous

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