Notifications
Clear all
Scottish Trust Deed Forum
11
Posts
4
Users
0
Reactions
1,916
Views
Topic starter
19/09/2013 2:07 pm
Had an interesting meeting in Aberdeen yesterday in a new liquidation and landlords hypothec reared its ugly head.
Generally where there is an insolvency whether it is a Trust Deed, Sequestration or Liquidation etc and there are commercial premises with rent arrears, the landlord has the right to claim hypothec and this is a real security over all the goods/assets within the premises. So you could have a situation where they change the locks and keep the entire stock.
I've always found this to be an incredible position as the landlord takes control of the entire assets within the unit the sale of these can be used to pay unpaid rent before other creditors receive any of the funds.
Fortunately the day was spent negotiating with a prospective new tenant who later agreed to take over the unit and therefore any threat was lifted.
The situation is possibly rare, although not unknown in Trust Deed cases where there is a business and premises. It does not, however apply to houses.
Off topic, I know, but (slightly) interesting nonetheless.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
19/09/2013 2:59 pm
Blimey Mark, you learn something new every day around here!
I guess this might be very relevant to a self-employed person who rents commercial premises.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
19/09/2013 3:42 pm
Yes, it's came up a few times in the last few years.
I'm sure this dates back to the old Braveheart days where the rich landowners had complete power over everything. I'm still amazed that this has never been stopped as it gives the landlord the same position as a secured creditor.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
20/09/2013 10:08 am
Good start to a Friday. All stock removed, Landlord happy, new tenant happy and it looks like there may be enough to pay all creditors in full.
Wish every Friday was like this!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
20/09/2013 10:09 am
Excellent.
You'll be able to get down to the pub this afternoon for a few laggards!
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
20/09/2013 12:01 pm
That sounds like a successful conclusion and especially on a Friday Mark.
The last time I was out closing down a premises I had to take two security guards with me for safety reasons and the police sent down two uniformed officers to assist.
David is not currently posting in the Trust-Deed.co.uk forum
Topic starter
20/09/2013 12:10 pm
Hi David
I know what you mean. I think we've all been there!
In the old days of HMRC appointments, you never knew what situation you were entering into. A wise man once told me the guys who threaten and shout will do nothing, it's the ones who don't you should be wary of!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
Topic starter
20/09/2013 12:11 pm
Oh! and to take along a member of staff who you could definately outrun.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
21/09/2013 11:12 pm
Interesting indeed Mark, though I am not sure the landlord actually has a right of sale anymore, as that was done using sequestration for rent, which as you will know was abolished in 2008.
Makes me wonder even more what the point of the hypothec is anymore other than to haggle for more money off the IP. What is the point of a security if the power to enforce has been removed?
21/09/2013 11:29 pm
Interesting indeed Mark, though I am not sure the landlord actually has a right of sale anymore, as that was done using sequestration for rent, which as you will know was abolished in 2008.
Makes me wonder even more what the point of the hypothec is anymore other than to haggle for more money off the IP. What is the point of a security if the power to enforce has been removed?
Topic starter
23/09/2013 9:49 am
Hi Robinhood
I think you are right, it represents nothing other than a bargaining tool against IP's, although fortunately in this case it wasn't required.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
