Business Van Lease - Transfer of Hirer - what can I do?

[TheWizard]

I’d be grateful for some input / advice on my business problem. I started a business last year and took out a 4 year lease on a van. I’ve decided to call it a day and cease trading, and have managed to find someone who wants to take over my van lease on its current terms - they want the van as is with the signwriting etc. Called the leasing company last month and they said over the phone to send a letter in with all the details and it would be done - no problems provided the new hirer agrees and passes the credit checks.

Then they advised 2 weeks later it wouldn’t be OK, as the circumstances weren’t “unusual” enough for a transfer of hirer to take place (only doing this if someone dies apparently …). Anyway, called them up to discuss, and they agreed again over the phone that it could happen, and that they would send out the necessary paperwork. This was two weeks ago, and in the interim I’ve sorted out the business closure, cancelled insurance & advertising, and arranged a trip down south to hand over the van and stock to the new hirer (he's basically buying my van and stock to add to his own business, a sort of takeover, both Ltd companies). Called the finance company today to query non-receipt of the paperwork and they’re now saying again that they won’t allow a change of hirer, and that the previous 2 employees I spoke to shouldn’t have advised it would be OK !!

Anyone have any views on this before I call them tomorrow – there was no manager there this afternoon to discuss it with.

Thx in anticipation ...

[Guest Old_andrew2018]

bump

[Conniff]

Are there any conditions in the contract that say you 'can't' sublease?

[buzby]

DON'T sublease, even if it is specifically allowed (it probably won't be) as this opens a can of worms with the DVLA (tickets, fixed penalties etc) and any re-registration is automatically notified to the beneficial owner of the vehicle.

 

As for the run around, hopefully you got the names and dates/times of the conversation - or better yet recorded the call? As a limited company, you could simply return the vehicle to the leasing company handing over the keys and walk away. Unless you provided a personal guarantee, any subsequent difficulties won't directly affect you.

 

I think you've done the correct thing, and arranged for the lease to be re-assigned. Faced with a loss, or the ongoing profitability of the deal, the leasing company will usually take the latter option.

 

That said, if you've only contacted them by phone - there is nothing for you to prove your version of events, so I think a formal letter, advising of the closure of your business and your finding someone to take over the lease, you should provide their details and ask for the paperwork to be sent immediately to the new lessor. That way you'll be protecting yourself.

[TheWizard]

Thx for the replies all and sorry for not coming back sooner.

 

In the end, I ended up with Capital Bank over a barrel and their hand was forced. It turns out all my paper work re the lease has been going to the wrong addresss - they'd overwritten my address on their system with that of the local borough council head office !! So a good breach of the data protection act had taken place - my correspondence regard business name, lease amounts and business closure all going to the counicl's post room, being opened by anyone and read , and subsequently never getting to me !!

Threatened them with action over this point alone and suddenly the started to co-operate - giving me a named person dealing with my case, sending lease documents by special delivery - doing everything and anything I asked for basically.

So it seems they CAN transfer leases, they just don't like to, even when it means they can get the original lease comp;leted rather than repossessing the van, because they know that when you're backed into a corner you'll end up taking a personal loss on the lease instead (buying the lease out and handing the van back) and they can sell the van at a healthy profit.

Here's someone who will be looking at contract terms VERY carefully in the future - if I ever take on a lease again !!

[buzby]

Do you know, I was going to ask that, it sounded like Capital 'Bank', previously known as North-West Securities and wholly-owned by the Bank of Scotland / Halifax Group . You'll fin unless you are taking advantage of tax advantages, leasing isn't really worthwhile - and if this shower are involved, misinformation and incompetence seem to go hand in hand. Glad you got it sorted!

[motormover]

I know this is an old link but I found a solution to my problem of surplus cars.

 

I listed them on re-leased.com bbut I could not find anyone to take over the leases. Re-leased are now managing them by renting them out I am covering my costs and on one actually making a small profit.

 

This is a much better solution than "bumping" the finance house. At the end of the day this recession will be over someday and we will all need decent credit ratings whetehr as sole traders or co directors.