BP Collins Advise Tenants on Insolvent Landlords

Any tenant renting office space enters into a legal agreement with a landlord. Tenants are urged to do some research into your (potential) landlords' finances before signing any office lease to ensure you protect your position in the event your landlord becomes insolvent. 

BP Collins Property Solicitors based in Buckinghamshire specialise in advising tenants of the legal issues when moving office.  They believe in today's economic climate, overstretched landlords are in danger of becoming insolvent.

For example; if a tenant has paid a rent deposit and it is not legally separate from the landlord's other assets, it may be lost if the landlord becomes insolvent. Check your office lease. It may be possible to persuade your landlord to refund the deposit or to agree to vary the lease to allow the deposit to be protected.

If the landlord fails to comply with its covenants, it is possible that the breach may be sufficiently serious to allow you to repudiate the office lease, should you so wish.

Another common problem arises where the insolvent landlord is itself a tenant and defaults on its covenants with the head landlord. If this results in the forfeiture of the landlord's office lease, this could lead to the loss of the right to occupy the premises.

If you have concerns about what your position would be in the event of the insolvency of your landlord, speak to the legal experts at BP Collins who can advise and assist in any necessary office lease negotiations.