Commercial Property Rent Arrears.
The common law remedy of distraint was abolished on 6 April 2014, when the commercial rent arrears recovery procedure is brought into effect.
From 6 April 2014, landlords must to follow a fixed, rigid process if they want to seize goods to pay rent arrears.
- the process can only be used where the lease is of commercial property only.
- a landlord must give a tenant written clear days’ notice of intention to seize goods;
- the process applies only to arrears of principal rent, interest and VAT – not insurance or service charge
- entry to commercial premises will be possible between 06.00 and 21.00 by authorised “enforcement agents”; (in practice certified bailiffs, who worked under the old system).
- goods must then be secured – either at the premises or at a place within a reasonable distance of the premises (where there is a significant risk they may be removed by the tenant) and cannot be sold until seven clear days following removal from the premises;
- a landlord can serve notice on a subtenant of its tenant, requiring payment of rent directly to the landlord; effective in 14 clear days .
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