Landlord eviction

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A SA client I have been warning for several years over his busness finances was finally evicted by his workshop landlord The workshop had some £5k of assets (leased fixture equipment) no further payments have been taken by the lease company. These assets were shown in FA Pool. Its not clear to me as to where/how to write these off. CG loss doesnt seem appropriate to me?

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By Truthsayer
18th Jun 2020 18:00

We need more detail of the lease. Lease purchase? Hire purchase? Operating lease? If the assets were capitalised, there will presumably be a creditor for the remaining payments due under the contract, not just those in arrears. Give us the full story. There will be a deemed disposal at a certain value, and that needs to be determined.

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By Paul Crowley
18th Jun 2020 19:56

I dislike the word lease for anything other than buildings
Prefer Hire purchase and Contract hire. But then I am past my prime.

Agree, not enough detail for constructive comment

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paddle steamer
By DJKL
18th Jun 2020 23:20

Where are the assets- if they belonged to a finance company were they returned to same by your client's former landlord?

Certainly in Scotland what we call Landlord's Hypothec does not pass assets not owned by the tenant to the landlord in satisfaction of rent arrears and I think it needs an insolvency event to be applied by the landlord in any case.

https://shepwedd.com/knowledge/issues-arising-landlords-hypothec

Subject to the law in whatever jurisdiction the items are should not the client or the finance house be seeking their return, or do landlords there have different rights?

(The topic is relatively current in my reading/research as I was looking into this up here just 3-4 weeks ago on behalf of a colleague)

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By palcouk
19th Jun 2020 11:07

Client left the workshop July 19, and at the time 'lost' much of his paperwork, which was boxed/filed, at the workshop. As a result I only have the bank statements to work from. The SA return 2018/19 is o/s & penalties issued.
The items were on a purchase/lease paid for over xx months. Payments taken from the business bank a/c which is still open, Payments ceased Nov 18 so it would appear he then owned the asset. Client was only able to retreive small tools and other movable items from the workshop leaving some £5k of assets/equip that was not imediately moveable.

The client is not devious, he is naive with regard business admin
Bailifs were acting for the landlord to recover o/s debts

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paddle steamer
By DJKL
19th Jun 2020 09:59

Up here we have simple procedure in the Sheriff Court, this aids obtaining possession of one's goods up to a value of £5,000, if I were your client I might consider similar worth a shot as I struggle to see (were it in Scotland) the Landlord's legal right to retain possession of the items.

Of course you do not advise what sum your client owes the Landlord, it may be a sleeping dogs lie approach would be better, but of course if there was an agreement with the landlord you then in the client's books might get-

Dr Rent paid
Cr Proceeds on disposal

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