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Thomas, Lawyer
Category: UK Law
Satisfied Customers: 7620
Experience:  BA (Hons), PgDip, Practising Solicitor
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If I have a personal surety on a business lease and the company

Resolved Question:

If I have a personal surety on a business lease and the company is liquidated can the landlord claim the unexpired rent if he utilises the premises himself or relets it, or can he only claim whilst it remains empty.
Also can he claim as a lumpsum or does it continue to be due monthly as the unexpired period continues
Submitted: 7 years ago.
Category: UK Law
Expert:  Thomas replied 7 years ago.



Thanks for your question.


In those circumstances the landlord would be under a duty to mitigate their loss by re-letting the property, so the rent he would be awarded would be in region of the amount of rent he would have received from the period the default occurred until it could and should have been re-let. This would obviously depend on the market demand for premises of the type and size in the area.

This would be in addition to any other sums property payable and owed under the lease.


If this is useful please kindly click accept so that I may be rewarded for my time. It will be gratefully received and you will be free to ask follow up questions.

Kind regards,



Customer: replied 7 years ago.

Hi Tom


Property is a tropical fish shop enclosed within a garden centre who are landlords


rent is sixmonths in arrears and lease has 18 months to run


lessee is limited company which is being liquidated


i suspect garden centre will either keep the fish section ( as they have enquired about stock value and have requested turnover information )or utilise the space for another activity


they have "offered" to waive surety on future rent ( which would not apply anyway if they take over) but they want past rent paid in full


can we play hardball and refuse to surrender the lease unless they make a concessionary gesture?


can they refuse to relet and therby

Expert:  Thomas replied 7 years ago.



No. If the rent is in arrears then there should be a forfeiture clause in the lease entitling them to terminate the lease as a result of the breaches of the leasehold covenants.


There is very little leverage you have available unfortunately, you have breached by not paying rent. They could take possession now, sue you for the previous rent and for future rents. It sounds as if they are being very reasonable in the circumstances actually.


If the company is being liquidated then you must refer their offers/requests to the liquidator.


Hope this clarifies, if so please click accept.



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