Arrears meaning

This Checklist sets out the matters a landlord ought to weigh up where a tenant faces insolvency, highlighting the options open to the landlord, such as Commercial Rent Arrears Recovery (CRAR), forfeiture, drawing on a rent deposit, and pursuing former tenants, guarantors and sub-tenants. It further addresses practical considerations for the landlord, including steps for securing and marketing the property, and contacting the insolvency practitioner. What type of insolvency scenario applies to the tenant? The remedies that can be exercised, and the limits that will bite, differ depending on the particular insolvency arrangement affecting the tenant. Each procedure brings distinct constraints and options. For a table summarising the restrictions, see Practice Note: Quick guide to landlord’s remedies in tenant insolvency. Has contact been made with the insolvency practitioner? It is vital to liaise with the relevant insolvency practitioner to assess the tenant’s position and to evaluate what, if any, prospect exists of outstanding sums being repaid, future rents being protected, or the tenant emerging from the...

Flowchart This flowchart outlines the requirements that need to be met to found a wrongful trading claim...

This checklist sets out a non-exhaustive range of matters to weigh up before using the commercial rent arrears recovery (CRAR) procedure to recover rent arrears. Initial considerations Confirm the premises are solely commercial and the lease prohibits any residential use. CRAR cannot be applied where the premises are residential or mixed-use, or where residential occupation is permitted, even if no-one is actually living there. Ensure occupation is evidenced in writing, for example by a lease or a tenancy at will. Verify there is a right to exercise CRAR. An immediate landlord may exercise CRAR, as can other parties such as an LPA or court-appointed Receiver. See Practice Note: Commercial rent arrears recovery (CRAR)—Who can exercise CRAR? Consider whether the landlord might later wish to forfeit the lease, since exercising CRAR will waive any existing right to forfeit. Check the tenant is not subject to any insolvency regime that may prevent CRAR being exercised...

In this issue: Key developments and horizon scanning Transferring property Property insolvency Property taxes Easements, rights and covenants Property in Scotland Leasing property LexTalk®Property: a Lexis®Nexis community Additional property updates this week Daily and weekly news alerts Trackers New Q&As Key developments and horizon scanning Leasehold and Freehold Reform Act 2024 The Leasehold and Freehold Reform Act 2024 (LFRA 2024), which gained Royal Assent on 24 May 2024 and featured in last week’s highlights, has now been published. Sections 113 (controls on remedies for arrears of rent charges), 117 (recovery of legal costs etc through service charge), 118 (repeal of section 125 of the Building Safety Act 2022) and 119 (higher-risk and relevant buildings: insolvency notifications) take effect two months after Royal Assent (24 July 2024). The rest of LFRA 2024 will commence by regulations to be made by the new government after the election. See: LNB News 04/06/2024 14. ...

In this issue: Forfeiture Contractual issues Repairing obligations and dilapidations Service charges Key developments and horizon scanning Property disputes in Scotland LexTalk®Property Disputes: a Lexis®Nexis community Additional Property disputes updates Daily and weekly news alerts New and updated content Trackers Latest Q&As Forfeiture Valuing a claim for wrongful forfeiture (Tanfield (as executor of the Estate of Paul Watkins) v Meadowbrook Montessori Ltd) In Tanfield (as executor of the Estate of Paul Watkins) v Meadowbrook Montessori Ltd [2024] EWHC 1759 (Ch), [2024] All ER (D) 77 (Jul), the court threw out a landlord’s winding-up petition for £167,593.41 presented against a company established to operate a school. It held there was a firmly arguable position that the majority of the petitioned sum was not rent arrears, but consideration payable for shares in the company. The judge further acknowledged a cross-claim with a genuine prospect of success, quantified at no less than £546,000 in...

In this issue: Repairing obligations and dilapidations Enforcing security and property insolvency Residential tenancies Enforcing security and property insolvency Disputes and remedies Residential tenancies Property disputes in Scotland Additional Property disputes updates Daily and weekly news alerts Dates for your diary Trackers Latest Q&A Repairing obligations and dilapidations RICS updates RICS updates Cladding External Wall Systems (EWS) FAQs The Royal Institute of Chartered Surveyors (RICS) has revised its frequently asked questions (FAQs) on cladding external wall systems (EWS) to align with how the Leasehold and Freehold Reform Act 2024 (LFRA 2024) impacts the Building Safety Act 2022 (BSA 2022). Part 8 of LFRA 2024 changes Part 5 of BSA 2022. These revisions affect the operation of cost recovery, remediation orders and remediation contribution orders for defects. They also touch on notifications by insolvency practitioners concerning ‘accountable persons’, and the recovery of legal costs via service charges. The amendments to...

ARCHIVED : This Practice Note has been archived and is not maintained . The Commercial Rent (Coronavirus) Act 2022 (CR(C)A 2022) preserves and broadens the safeguards afforded to commercial tenants during the coronavirus (COVID-19) crisis. It achieves this by ringfencing rent and service charge arrears built up while premises were mandated to shut, and by creating a statutory arbitration scheme through which sums can be written down or repayment postponed. A moratorium on landlord remedies also applies to shield tenants whilst arbitration is ongoing. Core provisions of CR(C)A 2022, together with the government’s Commercial rent code of practice following the COVID-19 pandemic (the Code), are outlined below. The government has additionally published statutory guidance on the Act’s terms. The window to commence arbitration has now closed, and with it the moratorium on landlord remedies where no reference was lodged. The moratorium endures for arrears that were referred in time (see Moratorium on landlord’s remedies). A Property Litigation Association survey reported very low take-up of the scheme, with markedly fewer...

This checklist supports a buyer’s solicitor in conducting an early read-through of the first draft of a contract for the purchase of commercial property issued by the seller, spotlighting the headline matters to verify. At times, the seller’s solicitor may prepare the agreement without fully grasping every point that must be addressed; accordingly, the buyer should stay alert to any omissions from the outset and raise probable issues or contractual needs at the earliest opportunity (even if only noted as a placeholder in the document while awaiting instructions or further detail). Identification of seller and buyer Heads of terms may not capture the parties precisely: Companies House: where the seller is a company, the buyer’s solicitor must confirm via Companies House that the named party and company number in the heads of terms are correct and match the details shown in the title documents. If the seller is an overseas company, a partnership or another entity, the buyer should immediately seek an opinion letter...

Development of the First Tier Tribunal for Scotland The Scottish Government’s Access to Justice Policy, prepared by the Cabinet Secretary for Justice within the Justice Directorate, seeks to: support individuals to settle disputes outwith court deliver a modern, up-to-date justice system broaden access to justice, and make the Tribunals system user-friendly (see the First-tier Tribunal for Scotland Housing and Property Chamber procedures consultation) As set out in the Housing (Scotland) Bill, the intention is to create a forum that is less adversarial than the courts and could remove the necessity for legal representation. There is, crucially, a recognised need for more efficient, specialist routes into the justice system for both tenants and landlords. To achieve this, proposals recommended simplifying the tribunal landscape by bringing Scotland’s various tribunals under a single umbrella, safeguarding their independence from the Scottish Government, and embedding consistent practices and procedures (see: Access to Justice Policy—Tribunals System). The Tribunals (Scotland) Bill was introduced to the Scottish Parliament...

FORTHCOMING CHANGE The Renters’ Rights Act 2025 obtained Royal Assent on 27 October 2025. For guidance on the Act’s effect on residential tenancies in England, see Practice Note: Renters’ Rights Act 2025—key provisions. Introduction The defence to a possession claim arising from non-payment of rent must be filed using Form N11R (defence form—rented residential premises). These drafting notes assist with properly completing Form N11R only...

Letter for sub-contractor to send to employer in the event of main contractor insolvency [ [ Sub-contractor’s headed notepaper ] OR [ Sub-contractor’s address ] ] [ contact name, job title and department ] [ name of employer company ] [ address ] Dear [ contact name ] [ name of project ]—[ name of main contractor ]—Insolvency We believe that [ name of main contractor ] [ has entered into administration OR is in liquidation OR has commenced a moratorium OR other ] ....

date [ date ] Parties [ name of Seller ] [ of OR incorporated in England and Wales (company registration number [ number ]) with registered office at ] [ address ] [ and whose address for service in England and Wales is [ address ] ] ( Seller ) [ name of Buyer ] [ of OR incorporated in England and Wales (company registration number [ number ]) with registered office at ] [ address ] [ and whose address for service in England and Wales is [ address ] ] ( Buyer ) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with registered office at ] [ address ] [ and whose address for service in England and Wales is [ address ] ] ( Guarantor ) ] 1 Definitions In this Agreement, the terms set out below shall have the meanings given: ...

Section 17 of the Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) provides that: (1) This provision applies where a person (“the former tenant”) has, as a consequence of an assignment, ceased to be the tenant under a tenancy, but either: namely that (a) in the context of a new tenancy, has, under an authorised guarantee agreement, guaranteed his assignee’s performance of a tenant covenant of that tenancy under which any fixed charge is payable; or (b) in relation to any tenancy, still remains obliged by that covenant under that tenancy, notwithstanding assignment...

This Q&A raises the issue of the extent to which a person who takes an assignment of the reversion to a residential lease is able to recover rent which fell due before the date upon which it takes effect Upon serving the tenant with notice of assignment of the reversion, the assignee’s rights depend on when the residential lease was granted: Leases granted before 1 January 1996: under section 141 of the Law of Property Act 1925, the assignee is entitled to rent falling due in the future. In addition, as established in Re King, the assignee may pursue arrears that accrued before the assignment, and once the transfer takes effect, the outgoing landlord’s ability to recover those sums is lost. Leases granted on or after 1 January 1996: the Landlord and Tenant (Covenants) Act 1995 applies. By virtue of LT(C)A 1995, section 3(3)(b), an assignee of the reversion is entitled to rent which becomes payable after the assignment takes effect. In...

The Landlord and Tenant (Covenants) Act 1995 (LTCA 1995) The LTCA 1995 does not extend to “old tenancies”, that is, those granted before 1 January 1996. Consequently, where the sale contract is silent on the matter, the entitlement to pursue the tenant for pre-completion rent arrears in respect of such “old tenancies” automatically passes to the purchaser with the transfer of the reversion (see the Law of Property Act 1925, s 141; Claims to the Possession of Land, paragraph B4.2; and Hill and Redman, Division A, Chapter 4, paragraph 1087). That entitlement is a chose in action, which can be expressly reassigned to the seller...