Get UK Law Questions Answered by Verified Experts
Thank you for your inquiry.
If the original tenant company has assigned (ie. transferred) their interest in the Lease to a new Tenant company lawfully under the terms of the Lease then the Landlord to is only able to terminate the Lease in accordance with the terms of the Lease.
If the original Tenant has been made insolvent then this would affect the Landlord in the event that the new Tenant company defaulted in paying their rent (or other sums due under the Lease) and the Landlord then sought to reclaim this from the original Tenant Company (ie. possibly by way of an Authoried Guarantee Agreement entered in to upon assignment of the lease to the new tenant company). If the company is insolvent, then plainly pursuing them for the sums due would be fruitless (ie. because they have no money).
The most common methods of terminating a lease are by way of break clauses specified in the Lease, which would grant to either the Landlord or Tenant the right to terminate at specified period (s) during the lease term upon the service of notice to terminate (for which there would certainly be a minimum notice time period). Failing that a lease can come to end either by expiration of the Lease term, or by the Tenant forfeiting the lease because of the tenant not performing their obligations under the Lease.
I hope this helps. If so, please kindly click accept or otherwise feel free to ask any further related points to follow up.
Right, sorry about the misunderstanding.
You should refer to the agreement originally made with the Company to check that the original agreement was assignable (ie. able to be sold to another company under the terms of the agreement).
If the lease agreement has correctly been sold by the original party and bought by another company each party to the agreement (ie. you and the new company that has purchased the insolvent company's interest in it) would be still be bound to perform their responsibilities under the agreement.
The agreement should refer to each parties' responsibilities and if the new company is not fulfilling a term of the agreement (ie. providing back up) then the agreement may entitle you to terminate it and return the items.
If the agreement does not entitle you to terminate it because of the breach of duty to provide backup then you will nevertheless be able to make a claim under contract law for a breach of contract for any expenses or losses incurred as a result of the breach (ie. the expense of paying for alternative backup)
After checking the agreement you should write to the other party confirming the breach, detail the costs incurred as a result of the breach and claim the sum from them. Ask to be paid within 7days failing which a claim will be made in the small claims court . You will be able to this yourself online though http://www.moneyclaim.gov.uk/.
If this has been helpful please kindly click "accept".
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).