Tag Archives: landlord

What are the consequences of taking money from a rent deposit if the tenant company is in administration?

If administrators use leased property for the benefit of the administration, rent is payable to the landlord for the period of occupation, as an expense of the administration. In London Bridge Entertainment, the court considered whether the administrators were obliged to top up a rent deposit where the landlord had taken monies from the rent … Continue Reading

Can a landlord be forced to accept a surrender of a lease?

In part 2 of a series of blogs we consider whether a landlord can be forced to accept a surrender of a lease and the consequences of that. This point was recently considered in the context of a scheme of arrangements where the Court concluded that a landlord cannot be forced to accept a surrender … Continue Reading

The court confirms that landlords have the right to forfeit a lease if its tenant enters a CVA. What practical impact does this have on landlord claims?

Can a CVA bind a landlord in respect of future rents? Is the landlord a creditor in respect of future rent? What about the right to forfeit; can a CVA modify that right? Is compromising rent under a CVA automatically unfair to landlords when other trade creditors are paid in full? These were some of … Continue Reading

Relief from forfeiture – in the balance

The demise of high street retail and the insolvency of household names, including Woolworths, BHS, and more recently Debenhams and Monsoon has been a real headache for property owners. The moratorium created by administration ties the hands of landlords, preventing them from forfeiting leases without first having obtained the consent of the administrator or the … Continue Reading

Landlord’s Rights: Enforcement options in insolvency

When dealing with a debtor or a tenant that has fallen behind with its payment obligations, one of the most cost effective ways of a creditor/landlord reducing its exposure against that entity will be to take advantage of a “self-help” remedy, such as taking possession of the entity’s assets and selling them in repayment of … Continue Reading

The minefield of surrenders and assignments

The minefield of surrenders and assignments A lease can often be the most financially draining contract a company has hanging around its neck, which can be particularly burdensome when the tenant company is already facing financial distress. Administrators are regularly faced with the task of relieving the administration estate of an onerous, costly lease and … Continue Reading
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