Have Enterprise thrown all their Toys out of the Pram over the Market Rent Option?

By | December 12, 2014

Barrel-dregs 3

Have Enterprise thrown all their Toys out of the Pram over the Market Rent Option?

Rachel and Andrew Burke of the Cross Keys, Knutsford, Cheshire – that they have been dealt a severe blow in respect of the assignment of their leasehold interest.

 

After the rent review was settled, it was always Rachel and Andrew’s intention to retire and assign the leasehold interest. That then concerned the grant of a new lease as they were on the end of a twenty year Whitbread lease with the expiration date early next year.  Enterprise Inns’ solicitors, Regional Manager and Divisional Director then agreed last summer that a new lease would be granted and that the assignor would probably spend a six figure sum from their own capital in a complete remodelling of the property.

 

The assignment process went at a snail’s pace and was eventually settled, to everyone’s satisfaction, with Enterprise Inns’ solicitors being fully paid up for their involvement in the assignment and the grant of the new lease.  Formal exchange of contracts was set for Thursday 12th December 2014.

 

Thursday lunchtime, Enterprise Inns refused to process the exchange of contracts on the basis that, as a result of the impending legislation for Market Rent Only option, that all new lease and all assignments were, from yesterday, on stop with no given date for resurrecting the contractual understanding.  Rachel Burke contacted her Enterprise Inns Regional Manager, Colin Broadhurst, who confirmed that he was forbidden to speak about the matter.  Contact was made with the Divisional Director who also confirmed that he was under company orders not to discuss anything.

  

It would seem that all lease renewals and new lease grants are, from now, completely on stop.  The next few days should be interesting indeed to see whether Enterprise Inns can be shamed into reversing the, now current, corporate policy.

Rob Willock of the Morning Advertiser who has, as you would expect, jumped on the story with a few muttered comments to the effect that Enterprise Inns have now gone way too far, unfortunately the article did not come out until Monday 15th December, giving Enterprise some breathing space.

A number of other similar cases have been mentioned to us. Come on Simon Townsend get your act together and accept that change is occurring and you have to adapt, I am sure the Right Hon. Greg Mulholland will ensure that the House of Commons will get full Chapter and Verse of this childish attitude towards your already stressed Lessees, many have been praying for a change of Corporate Policy for the better. Please spare us any diatribe by the BBPA of misinformation on this totally needless action to frustrate any lease assignments.

Pot Boy North

The views expressed are not necessarily the editors and www.buyingapub.com accepts no responsibility for them, we do try to avoid offensive or litigious statements being made. They are written by concerned professionals in the industry who feel that these issues should be raised to ensure that all licensees are made fully aware of many hidden pitfalls.

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