Commercial leases and Consumer Credit Agreements

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    Commercial leases and Consumer Credit Agreements

    Hello,

    I am preparing to let out a commercial property to an individual who wants the lease in his personal name, rather than a limited company which is what I'd normally expect to do. Question - Do I need a consumer credit license if the tenant is an individual? The OFT guidance on this is a bit vague. Residential agreements seem to be exempt, but the guidance of what constitutes an agreement that might be affected by the act could be interpreted to include a commercial lease, due to the long term nature of it. Any thoughts?

    Simon.

    #2
    No, you are not doing a consumer transation - this is business.
    Providing the individual is sound financially and preferably a property owner, it is usally advantageous to landlords to have the lease in one or more individuals' names. A limited company can be wound up if it becomes insolvent.

    Comment


      #3
      Great - thanks.

      You said "as long as the individual is sound financially" - were you just referring to them having some worth in the event of non payment or do I have to be able to show that I checked they were able to afford the lease?

      Simon.

      Comment


        #4
        Originally posted by simon71 View Post
        Great - thanks.

        You said "as long as the individual is sound financially" - were you just referring to them having some worth in the event of non payment or do I have to be able to show that I checked they were able to afford the lease?

        Simon.

        The comments were made in relation to the ability of the T to pay rent - if you have a mortgage on the property you would also need to prove the T was good for the rent to mortgagee to gain their consent for the letting.
        [I]The opinions I give are simply my opinions and interpretations of what I have learnt, in numerous years as a property professional, I would not rely upon them without consulting with a paid advisor and providing them with all the relevant facts[I]

        Comment

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