Our management company, who managed our resort for 7 years is in Administration and is proposing a huge reduction in the rent to remain. The owners have secured other proposals also at reduced rentals but they are all on the basis of a new 9 year term. Most owners only want to sign up for 3 -5 years. Is 9 years a statutory minimum length for a leaseback agreement? If so given our circumstances where our management company is likely to break the lease after 7 years does the 9 year minimum term still apply to a new agreement? If anyone can shed any light on this issue I would be very grateful.
I'm afraid I don;t know the answer and I am hoping someone
with a legal background can help.... I too would be
interested in people's views on this...I understand that
leases are generally either 3,6 or 9 years long but I dont
know if there is anything forcing a minimum 9 year
term..because it is a leaseback
Most of the new ones I have seen were 9 or 11 years.
I suppose you really want one to cover till the end of your TVA relief period and that is why they are what they are.