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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...
In this issue: Transferring property Leasing property Property management Statutory compliance Property development Environment, energy and buildings Property taxes Property in Scotland Additional property updates this week Daily and weekly news alerts Trackers New Q&As Transferring property Death and/or administration of an estate not a bar to adverse possession claim In Nazir v Begum [2024] EWHC 378 (KB), the King's Bench Division rejected an appeal challenging a conclusion that the respondent had been in adverse possession of the land in dispute. Under para 12 of Sch 6 to the Land Registration Act 2002 (LRA 2002), an individual is not treated as in adverse possession of an estate held on trust. The appellants' father, the first registered owner of the land, died intestate; the appellants secured letters of administration over his estate and later became the registered proprietors of the disputed plot. The judge dismissed the appellants' possession claim against the respondent,...
In this issue: Forfeiture Electronic communications Neighbour and party wall disputes Service charges Trespass and adverse possession Residential tenancies Lease covenants and obligations Contractual disputes Repairing obligations and dilapidations Property disputes in Scotland LexTalk®Property Disputes: a Lexis®Nexis community Further Property disputes updates Daily and weekly news alerts New and updated content Dates for your diary Trackers Latest Q&As Forfeiture Suing for service charges did not waive right to forfeit (Clemente v Mindmere Ltd) In Clemente v Mindmere Ltd [2024] All ER (D) 14 (Feb), [2024] UKUT 50 (LC), the Upper Tribunal (Lands Chamber) dismissed the tenant’s appeal against the First-tier Tribunal (Property Chamber). The FTT had concluded that administration charges of a specified amount were reasonable and, if demanded, recoverable from the appellant to reflect the landlord’s legal costs incurred before the FTT. A key issue was whether the landlord could pursue a County Court claim...
The Tropical Zoo Ltd v The Mayor and Burgesses of Hounslow London Borough Council [2024] EWHC 1240 (Ch) What are the practical implications of this case? The court upheld a covenant rarely encountered in commercial leases, requiring a tenant to “remedy any breach of a Tenant Covenant Notified by the Landlord to the Tenant as soon as possible and in any event within two months after service of the Notice”. This covenant (9.1) appears to have been included because of the customised nature of the arrangement—i.e. a local authority granting a lease, probably at a discount, to support the operation of a zoo within its area. The clause grants landlords a renewed opportunity to act, enabling forfeiture for a breach even where the right to forfeit for that same breach has already been waived. The High Court’s confirmation that this drafting works as intended may prompt landlords to incorporate similar wording more often, as it lets them choose a strategically convenient moment to forfeit—for example, when a replacement...
FORTHCOMING CHANGE : The Renters’ Rights Act 2025 received Royal Assent on 27 October 2025 For guidance on the Act’s effect on residential tenancies in England, refer to Practice Note: Renters’ Rights Act 2025—key provisions. That Practice Note details which party must issue a break notice and on whom it must be served, along with the acceptable methods of service. It addresses whether service is permitted or required by contract, the statutory frameworks governing service of notices, and the deeming rules under: section 196 of the Law of Property Act 1925 (LPA 1925) section 23 of the Landlord and Tenant Act 1927 (LTA 1927) section 7 of the Interpretation Act 1978 (IA 1978) the common law It further considers how break notices align with statutory security of tenure for assured shorthold tenancies (ASTs) under the Housing Act 1988, and with business tenancies under the Landlord and Tenant Act 1954 (LTA 1954)...
This Practice Note explains the legal framework governing rent and rent review clauses in Scottish commercial leases. For disputed elements of rent and rent review, see Practice Notes: Rent arrears in commercial leases—recovering—Scotland and Commercial property rent review disputes—Scotland. Rent At common law, one essential requirement for a lease is the obligation to pay rent, even if only a token sum. Rent is typically due quarterly in advance on the Scottish quarter days; however, it is also frequent for leases where the landlord is an English property company or pension fund to specify payment on the English quarter days (see below) to maintain uniformity across the landlord's portfolio. After the 2008 recession, retail tenants increasingly sought to pay rent monthly in advance, and many landlords have been willing to consent to this. Such arrangements are generally personal to the original tenant and are recorded by a back letter; see Practice Note: Back letters to commercial leases in Scotland. The new Scottish quarter days are: Candlemas,...
This Practice Note outlines the range of potential consequences a landlord should weigh before taking rent from someone other than the tenant. Those consequences may include contentions that third-party payment of rent has effected a surrender by operation of law with a contemporaneous re-grant in favour of the payer, or that the landlord is estopped from disputing that an assignment has occurred because of the third party’s remittance. The point often arises where: a company connected with the tenant (for instance, a parent or subsidiary) tenders the rent the tenant intends to assign, or is in the course of assigning, the lease the tenant company is insolvent (such as in administration) and a third party wishes to occupy the premises Surrender by operation of law A key risk to evaluate is whether receipt of rent from a third party could amount to a surrender by operation of law, coupled with the creation of a fresh implied lease in favour of the...
This Agreement is entered into on [ insert date ] of [ insert month ] [ insert year ] by and between: [ insert name ], of [ insert address ] (' Council '); [ insert name ], of [ insert address ] (' County Council '); [ insert name ], a company duly incorporated and registered in [ insert details ] under number [ insert details ], whose registered office is at [ insert address ] (' Developer '); [ Additional parties as necessary eg owner, landlord, mortgagee, option holder etc. ] (' [ insert additional parties as necessary eg owner, landlord, mortgagee, option holder etc ] '). Recitals The Council is the local planning authority for the purposes of section 106 of the 1990 Act for the area within which the Land is situated and is the body by whom the obligations contained in this Deed are enforceable. The County Council is the local highway...
AGREEMENT relating to Section 106 and 106A of the Town and Country Planning Act 1990 [ and [ insert other legislation ] ] in relation to the development at [ insert address ] This Agreement is dated [ insert date ] Parties [ insert name ], of [ insert address ] (the Council) [ insert name ], of [ insert address ] (the County Council) [ insert name ], of [ insert address ] (the Owner) [ Additional parties as necessary e.g. landlord, mortgagee, option holder etc. ] ([ insert additional parties as necessary e.g. landlord, mortgagee, option holder etc ]) Background The Council serves as the local planning authority for the purposes of sections 106 and 106A of the 1990 Act for the area where the Land is located and is empowered to enforce the obligations contained in the Original Agreement. The County Council is the local highway authority for the area in which...
A landlord of commercial premises let under a lease may invoke the mechanism in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (TCEA 2007) to recover rent due from the tenant under that lease. This mechanism is known as commercial rent arrears recovery (CRAR) (TCEA 2007, s 72(1)). When TCEA 2007 commenced on 6 April 2014, CRAR supplanted the landlord’s former common law right to distrain, which from that date was abolished (TCEA 2007, s 71). TCEA 2007, accordingly, provides a complete statutory code defining the scope of the landlord’s remedy where rent on commercial premises is outstanding under the CRAR regime. If a tenant leaves rent unpaid, the landlord may serve a notice on any subtenant specifying the sum it is entitled to recover under CRAR (TCEA 2007, s 81). That notice takes effect after 14 clear days have elapsed from service (TCEA 2007, s 81(5) and the Taking Control of Goods Regulations 2013, SI 2013/1894, reg 53)...
Under the Capital Funding Guide issued by Homes England, where a development lies within a designated protected area (DPA) and benefits from grant, the registered provider (RP) granting a shared ownership lease must include one of two provisions: limit staircasing to a maximum of 80%; or if staircasing beyond 80% is permitted, require the leaseholder to sell their share back to the landlord (or a nominee that is also an RP) at market value when they wish to sell. In certain cases, a local authority can seek a waiver of these conditions from Homes England where the supply of shared ownership homes is no longer constrained. Notwithstanding guidance suggesting one of the above clauses is mandatory for every shared ownership lease in a DPA, our understanding is that the applicable regulations do not impose this where the site has not received grant. For more detail, see: Practice Note: Entitlements under shared ownership leases Housing (Shared Ownership Leases)...