Solicitors in Essex & London
Are you a landlord of an insolvent tenant? When rent arrears arise it is important to obtain professional advice as soon as possible. The best way to proceed is not always clear at first. Our commercial property litigation team acts for many landlords of commercial premises and regularly advise on rent recovery and remedies available to the landlord where rent is unpaid.
We find the following points arise in most cases:
What if the tenant becomes bankrupt (or company goes into liquidation/administration)?
These are known as “acts of bankruptcy/insolvency” and they will normally trigger termination of the lease, but the lease terms must be considered.
An administrator may be appointed for an insolvent company tenant under a Company Voluntary Arrangement (CVA). Where the administrator is using the premises, we can help negotiate terms with the administrator for payment for use and access and deal with any surrenders or assignments of the lease that are needed.
If the tenant has paid a rent deposit, this can be utilised against rent arrears. Advice should be obtained before doing so on the wording of the relevant clauses and how they operate in practice.
In some cases, it may be appropriate to seek a Court Order for possession of the premises rather than forfeiting the lease. Court proceedings reduce the risk of a tenant obtaining relief from forfeiture and thus enables the landlord to proceed with greater certainty when re-letting.
For any advice on rent arrears in commercial property, our property litigation team have experience and expertise and should be contacted at the earliest opportunity.
If you would like further legal advice relating to Property Related Insolvency, please feel free to contact any of our commercial property litigation solicitors directly to discuss; we offer consultations in any of our five offices across Essex and London, or, if more convenient, we are happy to meet you onsite at your own premises.
Due to the recent Coronavirus (COVID-19) outbreak we are currently offering appointments by telephone and some video calling services. Our offices are also open with comprehensive safety measures in place.