The value of offices, retail space and warehouses has fallen by around 45pc since the onset of the credit crisis in 2007.
The sector's demise has played a major role in the woes being endured by Britain's biggest banks. The recent growth in the economy may be evidence that things may be turning a corner but with small business tenants still experiencing severe financial difficulties there is no cause for celebration for existing Commercial Landlords yet.
The Litigation Department offers assistance to our Commercial Landlord’s in circumstances where a tenant fails to pay the rent due under a lease. Each situation is different and if you’re owed rent then a thorough review of all the options open to a Landlord can be carried out by our Litigation Department. This does not mean that all cases will proceed to court action. In some cases, the best option could be doing nothing at all but the receipt of advice shall put you in possession of all the options when deciding on the way forward. Landlord’s faced with these circumstances should be encouraged to seek thorough and complete advice in all cases.
We offer support to our Landlords in the following:
- Distrain for the rent against certain goods belonging to the tenant at the premises
- Sue for the rent via court action
- Forfeit the lease, either by court action or by peaceable re-entry (modern leases will nearly always have an express forfeiture provision)
- Payment of rent from administrators
- Pursuing guarantors
If the tenant has failed to pay the rent because it is (or may shortly become) insolvent, the
landlord’s freedom to distrain, sue or forfeit may be circumscribed by the Insolvency Act 1986 so quick and affirmative action is what is needed.
For further information please contact Kellie Williams-Jauvel on 020 8971 1020 or at kellie.williams-jauvel@morrlaw.com
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