Business tenancies: Landlord remedies for non-payment of rent

By Brabners LLP

18 Dec 2020

hd.jpg

Reflecting the introduction of various legislation providing temporary relief for tenants during the Covid-19 pandemic.

Landlord’s Remedies - Forfeiture

Summary of remedy - Landlord takes back possession of the premises by court proceedings or by peaceable re-entry i.e., by instructing bailiffs to change the locks.

Is the remedy available now? – No, Suspended until 31/03/21 (nb forfeiture still available for other breaches of lease).

Landlord’s Remedies – CRAR (Commercial Rent Arrears Recovery)

Summary of remedy - Landlord instructs an enforcement agent to serve notice, enter the premises, take control of a tenant's goods and sell them to recover the value of the rent arrears (normally available if 7 days’ rent owing).

Is the remedy available now? – Yes, but only if 276 days’ rent is owing, increasing to 366 days’ rent after 25/12/20.

Landlord’s Remedies – Court Proceedings

Summary of remedy - Proceedings are issued at Court for the debt – but judgment will still need to be enforced once obtained.

Is the remedy available now? - Yes.

Landlord’s Remedies – Statutory Demand

Summary of remedy - A statutory demand is a written demand for payment of a debt and can be served for rent arrears of at least £750 (corporate tenant) or £5,000 (individual tenant) – failure to pay is used to establish insolvency for a winding-up petition to be presented.

Is the remedy available now? - Yes – for a tenant who is not a UK company. For tenants who are UK companies, there is no point as statutory demands issued 1/3/20 to 31/03/21 will be void.

Landlord’s Remedies – Winding-up petition

Summary of remedy - A winding-up petition is a court application for a corporate debtor to be put into compulsory liquidation on the grounds that it is unable to pay its debts.

Is the remedy available now? Yes but:

Not on the basis of a statutory demand; Not unless the landlord believes EITHER that coronavirus has not had a financial effect on the company OR that the company would have been unable to pay its debts irrespective of the financial effect of coronavirus.

Landlord’s Remedies – Rent deposit

Summary of remedy - A rent deposit may be taken when the lease is granted as protection against default – landlord can draw down from this if rent is unpaid.

Is the remedy available now? Yes.

Landlord’s Remedies – Recover from Guarantor

Summary of remedy - Third parties may have indemnified the tenant’s liabilities, either as guarantor under the lease, or by being a former tenant (“old lease” or AGA).

Former tenants must be served with a s.17 notice (under the Landlord and Tenant (Covenants) Act 1995) within 6 months of the debt arising.

Is the remedy available now? Yes.

Landlord’s Remedies – Recover from Subtenant

Summary of remedy - Where there is a subtenant, a landlord can serve notice under s.81 Tribunals Courts and Enforcement Act 2007 to divert the rent owed by the subtenant direct to the landlord (circumventing the tenant which is not paying rent).

Is the remedy available now? Yes, but it is considered that the number of days’ rent required to exercise CRAR (see above) apply to this remedy too.

For more information or advice on the remedies outlined above please contact:Helena DaviesPartner, Property LitigationT: 0161 836 8925M: 07557 238 915E: [email protected] 

 

Latest news

1

Three weekly domestic waste collection considered in plans Waste recycling Blackpool

Three weekly domestic waste collection considered in plans

01 Jul 2025

2

Graham Engineering confirms acquisition to a2e Industries Graham Engineering

Graham Engineering confirms acquisition to a2e Industries

01 Jul 2025

3

Training 2000 celebrate 'Good' rating by Ofsted Training 2000

Training 2000 celebrate 'Good' rating by Ofsted

01 Jul 2025

4

Fox Group acquires J Fisher and Sons Colin Fisher, Paul Fox CEO and Gary Fisher.

Fox Group acquires J Fisher and Sons

01 Jul 2025

5

Beever and Struthers strengthen leadership team with new partners Dean Curtis and Joe Diston

Beever and Struthers strengthen leadership team with new partners

01 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Chamber Breakfast Networking – July
Chamber Logo1.png.png
LBV Hub Networking
02 Jul 2025 - 02 Jul 2025

Chamber Breakfast Networking – July

St John's Hospice, Slyne Road, Lancaster, LA2 6ST

08:00 - 10:00

The Marketing Metrics that Matter – July 4
LBV Hub Seminars
04 Jul 2025 - 04 Jul 2025

The Marketing Metrics that Matter – July 4

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

08:30 - 11:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin