Park owner NOT paying GUARANTEED rentals to lodge

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Tue 11 Dec 2012 11:29
Park owner NOT paying GUARANTEED rentals to lodge - Sweetie007

We own a lodge on a holiday park and we enter each year into a guaranteed rental scheme where we give the lodge back to the park for 26 weeks and each quarter we are paid the guaranteed rentals. We should have been paid in Sept 2012 and the park owner has now turned around and said that they could not pay because the banks have withdrawn the overdraft. They have sent out no communication and can't give a time-frame of when we will be paid.

In the meantime throughout the year, holiday makers have been staying in our lodge and paying the money to the park. Has anyone else experienced this? What are your thoughts on where we stand legally?

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Tue 11 Dec 2012 16:34
Park owner NOT paying GUARANTEED rentals to lodge - Bromptonaut

You could try legal action but if he was using an overdraft to keep the business going and it's been withdrawn then he may be having real solvency issues. Presumably there was nothing in the grs about rent money being seperately banked etc?

If he has no funds to satisfy a judgement then you're no further forward and probably worse off.

I'd be looking to negotiate, perhaps with threat of legal action as a nuclear option if you thought it was going to get a result. Proper legal advice might be needed.

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Tue 11 Dec 2012 21:35
Park owner NOT paying GUARANTEED rentals to lodge - Falkirk Bairn

A guarantee is only as good as the company giving it.

Small claims court?

Google the site owners, look at their accounts on line, see if there are CCJs against the company/individuals - run a credit check - maybe £20 will tell you how the land lies.

How much you spend on getting the money depends on how much is owed and the chances of recouping funds even with a court judgement in your favour.

You will no doubt be only one of many!

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Wed 12 Dec 2012 10:19
Park owner NOT paying GUARANTEED rentals to lodge - Sweetie007

Thanks for the advice. I suspect we are one of many lodge owners in this position.

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Wed 12 Dec 2012 10:17
Park owner NOT paying GUARANTEED rentals to lodge - Sweetie007

Thanks for that. As far as I know there is no separate client bank account for when people stay in the lodge It sounds like he has been using the money as working capital. Even now he has not commnicated a single word about non payment of the rentals! We have had to call him.

Legal advice sounds the next way forward.

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Wed 12 Dec 2012 22:03
Park owner NOT paying GUARANTEED rentals to lodge - Avant

Your only hope is that something in the terms of your contract with the owners required them to keep the funds payable to lodge-owners separate - i.e. effectively in a trust fund which couldn't be pooled with the park's own funds.

If there isn't any such requirement, unfortunately you are in the same position as other unsecured creditors if they go bankrupt. Any assets will be liquidated and the proceeds divided between the creditors in proportion to the amounts owed.

If you took legal advice before entering into the scheme, any decent lawyer would have advised you to ensure that funds due to you were kept separate.

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Thu 13 Dec 2012 22:17
Park owner NOT paying GUARANTEED rentals to lodge - Turbodieseldriver

I wil most definitely being seeing my lawyer about that...

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Fri 21 Dec 2012 17:52
Park owner NOT paying GUARANTEED rentals to lodge - Armitage Shanks {p}

If it comes to legal action there can still be problems. If you havea 100% case and get a judgement in your favour you then have to get it enforced and that is not necssarily straight forward or quick to get the money awarded .

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