Contracts after enfranchisement

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    Contracts after enfranchisement

    Just been enfranchised.

    There are a number small maintenance contracts, fire extinguishers, building maintenance etc. To get a better deal we as landlord signed up to a five year maintenance contract. These are only a year old.

    Very small value all under £200 pa. Which meant there wasn't a need for consultation.

    When the Man Co takes over what happens as there are outstanding agreements with early exit penalties if they are severed.

    Or as the man Co are taking over from the landlord do these obligations transfer to the Man Co?

    Maintenance contracts post-enfranchisement

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      My understanding is that the new legal entity does not inherit the legal obligations of the old legal entity. However, the previous management entity WILL be liable to honour those contracts and the directors I am guessing are common to both.

      If the supplier is reasonable, you should find that they would rather avoid any lengthy legal actions and may be willing to transfer the contract to the new company.
      Leasehold Solutions Ltd
      Freeing tenants from the slavery of lease
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        I have always treated these contracts as being "frustrated" and therefore unenforceable by those you have contracted with.


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