Dear Law Answers,
A couple of years ago, I took a deed of assignment on a commercial lease for a retail shop space. I took over an IT computer repairs and internet cafe business. The idea was of course to make a living out of it. Sadly, this has not worked out. After almost 2 years of losses, I have hit the bottom of the barrel and cannot continue to make up the difference in rent. As a result, I have started falling behind in rent. Currently, it stands about half a months' rent behind. I have already been advised by the landlord that if I do not pay the arrears within 48 hours (he just wrote a date 2 days away) "they will go legal".
In the past, I have been able to borrow money, had a tax return, etc., to fill the coffers. For the last 8 months, I have been attempting to sub let, or get a deed of assignment on my own. I even enlisted real estate agents to assist in leasing the space. Sadly I have been unable to find a new tenant. I have contacted the landlord many times regarding my situation and diminishing capacity to meet the repayments in an attempt for leniency or assistance in finding a new tenant or even a way out of the lease. All these avenues have been rejected and I was simply told "you have to pay or we will go legal".
There is only 9 months left on this lease and after crunching some basic numbers I have found if I closed the doors right now removing the staff member cost, surrender the security deposit and not have a business leaking money for the next 9 months the total cost of the remainder of the lease is actually less then if I left it open.
I am starting to think I am at the point where I need property law legal advice. My question is based on the past 8 months of the landlord's refusal to accept any proposal I have attempted, and my committed attempts to find a new tenant. Do I have any legal grounds under commercial law at all? I have no idea what to do now and have no more options to keep up with the rental payments.
Kind regards,
Scylon
A couple of years ago, I took a deed of assignment on a commercial lease for a retail shop space. I took over an IT computer repairs and internet cafe business. The idea was of course to make a living out of it. Sadly, this has not worked out. After almost 2 years of losses, I have hit the bottom of the barrel and cannot continue to make up the difference in rent. As a result, I have started falling behind in rent. Currently, it stands about half a months' rent behind. I have already been advised by the landlord that if I do not pay the arrears within 48 hours (he just wrote a date 2 days away) "they will go legal".
In the past, I have been able to borrow money, had a tax return, etc., to fill the coffers. For the last 8 months, I have been attempting to sub let, or get a deed of assignment on my own. I even enlisted real estate agents to assist in leasing the space. Sadly I have been unable to find a new tenant. I have contacted the landlord many times regarding my situation and diminishing capacity to meet the repayments in an attempt for leniency or assistance in finding a new tenant or even a way out of the lease. All these avenues have been rejected and I was simply told "you have to pay or we will go legal".
There is only 9 months left on this lease and after crunching some basic numbers I have found if I closed the doors right now removing the staff member cost, surrender the security deposit and not have a business leaking money for the next 9 months the total cost of the remainder of the lease is actually less then if I left it open.
I am starting to think I am at the point where I need property law legal advice. My question is based on the past 8 months of the landlord's refusal to accept any proposal I have attempted, and my committed attempts to find a new tenant. Do I have any legal grounds under commercial law at all? I have no idea what to do now and have no more options to keep up with the rental payments.
Kind regards,
Scylon