Landlord dispute

[up23]

Okay fellas dilema in selling my place. I had a 5 yr + 5 yr option lease. 2 yrs were personally liable, I will be here for 2 yrs in May. I spoke to my landlord and explained to her I really wasnt making money here for the whole time I was here so Im gonna sell . I ask her can some1 assume the lease she says yes as long as they want to take a 2 yr guarantee I told her that they will take the 2 yrs as long as we can bring the lease back up to 10 years ( 5yr+5yrs). She says okay I find a buyer and everything is going fine until now. My landlord
tells me she doesnt want to assign the lease to any1 unless they give her a 5 year personal guarantee, which I told her that is crazy and unheard of. She told me since it wasnt written in stone then she has the right to change her mind. What do u guys think I should do???

 

[pizzamaker]

It’s hard to pass on much advice without having read your lease. You really should consult an attorney, have the lease reviewed & consider your options at that point. I would never PG a lease for another operator. NO WAY. Your lucky that you only had to PG 2 years of your own lease, many landlords will require you to PG the whole thing & every renewal option. Informing your landlord that your profits we’re not what you would have liked probably didn’t help things. Your landlord just wants to collect the rent. You probably shook her up a bit when you mentioned your profitability & now she may have you on the hook & will try to keep you on the hook to ensure she gets paid from the new tenant.
It’s best to keep in on a “as you need to know” basis with your landlord.

A couple of other considerations include:
Will the new buyer (her new tenant) be required to PG 5 years as well. That insulates you a little.
What kind of operator is the buyer? Experienced? If you PG the lease you are guaranteeing the buyer’s lease payments? Do you want to bet on that horse?

 

[up23]

I wouldnt have to pg to the lease. Ill be let out of the lease and they will pg it. Im just upset because she said yeah she would let me assign the lease to sum1 else and now shes backing out.Instead of 2 yrs she wants 5 yrs pg.

 

[Kris]

It would be worth the couple of bucks to see an attorney.

 

[bodegahwy]

A few thoughts:

1. She is not backing out. Changing her mind on the length of the PG is a long way from backing out.
2. You original lease should define how any assignment will work. A common approach will state that landlord’s consent to assignment will not be “unreasonably withheld”, they also often state that the assignement will be on the same terms as the original lease. However, they also often require that the new tenant be of equal or stronger financial strenth to the first tenant.

If your lease does not define the conditions and terms for assignment, the LL is within her rights to require this. I also think that is should not be a very big deal or a deal killer. If the new tenant is a solid financial candidate you could probably negotiate this… if not, the LL is probably right to ask for it.

Count yourself lucky if you do not remain on the hook yourself until the end of your first five years. Many leases make that a condition for assignment.