Transfer of Lease

3 posts / 0 new
Last post
Transfer of Lease

Hello,

I have just received a letter from the owner of the resort wishing to cancel the leases and this first seemed good news. Then on further investigation it seems this is going to be a transfer of the lease to the hotel operator. They are stating that the hotel company will be in touch and offer varous options for owners to agree to. It has also been mentioned that the hotel operators wish to deal directly with owners and having one company manage 70% of the properties keeps the resort TVA complient.

Could anyone advise if they have come across this situation before? I have a CDP against the owner for unpaid rent and he also has a court case pending to cancel the lease which he has been able to dealy and appeal.  

 

Thanks

 

 

Hi Clare, 

If there is a transfer from one management company to another, they don't really need the property owners agreement. Any debt/ arrears still stand with the management company in place at the time of the arrears being created. Same with CDP and court case. 

Now if the conditions of your current lease are not being kept or respected, you do not have to sign any new agreements. Of course you have to be careful with the VAT aspect as you could be requested to pay a portion. Also you will need to review the co-ownership rules regarding the management of the property / residence as tourism residences need to have a unique management company in place and a number of rules and laws are connected to it. Be careful before you make your move.

 

Regards, 

Eddy 

Thank you that is very helpful and informative. 

They apparently have to instruct a bailiff to do so if there is not agreement from the owner and obviously incurring the costs involved in that. On agreement this is not necessary.

It is obviously in the resort owners interest to seek the approval of the owner to avoid paying these costs. Other than that it does seem advantage in changing the lease asthe very restrictive implied terms of leasebacks will still stand. The current management are not abiding by the contract and there are no gurantees the new managers will either.

I will certainly be thinking very carefully before accepting an agreement.

 

 

 

 

 

You must sign up or login to access more forums.