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Ask Buachaill Your Own Question
Buachaill
Buachaill, Barrister
Category: UK Law
Satisfied Customers: 10536
Experience:  Barrister 17 years experience
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We own a building which contains a pub. Their license has

Customer Question

hi, we own a building which contains a pub. Their license has recently been revoked thus their rent is in arrears. He said he is going to appeal or change the license name into his son etc, but this would take a long time. The lease still has 18 years remaining without any breaks. My questions is, can we apply for any court order to seal his assets like houses from selling off, so that to secure our debt?
Submitted: 1 year ago.
Category: UK Law
Expert:  Buachaill replied 1 year ago.
1. I regret to say that you cannot get security for a legal claim being made in court. You must first get a judgment before you can attach assets to secure your claim. Secondly, a freezing order against the assets of a defendant to your claim would only be granted if there was shown to be some element of fraud and the risk of dissipation of assets or proceeds beyond the EU. Freezing orders are an exceptional remedy and are not easily granted. So unless you can show the leaseholder is going to run off with everything, a freezing order against his assets won't be granted. In your question, you make no reference to this person evading judgment by moving his assets beyond the EU. So, as things stand, a freezing order would not be granted.
Customer: replied 1 year ago.

in what cinario that he can end up with not paying us, is bankrupt the only option? What if he transfer all his assets to his wife etc, can we do anything to make sure that he pay us?

Expert:  Buachaill replied 1 year ago.
2.dearLily, firstly, any transfers of assets to this man's wife will be set aside by a court. So if he seeks to avoid judgment in this way, it can be easily prevented. However, if this man simply does not have enough money to pay you then it is a different story. You can make him bankrupt, but that will not get you your money. Ultimately you cannot get feathers off a frog! However, if this man has assets, you will be able to recoup a judgment against him. The key is to get a judgment against him quickly. So get a solicitor to issue legal proceedings immediately.
Customer: replied 1 year ago.

thanks, ***** ***** rent will become more and more in the future, and his lease has still 18 years to run, at the moment it is not a big amount to sue him yet, but after a while it could accumulate. what do you suggest ?

Expert:  Buachaill replied 1 year ago.
3. Ultimately, whilst you can sue this person for money owing under the lease, you have a duty to mitigate your loss. In practical effect, this means that you should get a new tenant in there once this man leaves or his son fails to take out a new licence. So although, you can potentially keep issuing new writs for arrears of money due under the lease - into the future - in practical effect you should seek to get a new tenant in there once this man leaves or is unable to pay up, as any court will look to whether you have mitigated your loss and got in a new tenant once this tenant leaves.
Customer: replied 1 year ago.

thanks, ***** ***** case shows closed?

Expert:  Buachaill replied 1 year ago.
4. It should show that it is closed. You can continue with it, if you wish. I am happy to answer more queries.