Tenant Insolvency

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Tenant Insolvency

The financial demise of a tenant is an occupational hazard for the commercial landlord. In the event of a tenant becoming insolvent, it is essential that the landlord considers its strategy and explores its available options at the earliest possible opportunity.

This will include consideration of one or more of the following issues:

  • Liability of a liquidator or administrator for ongoing rent;
  • Recovery of rent directly from any subtenant pursuant to section 6 of the Law of Distress Amendment Act 1908;
  • Utilising rent deposit monies;
  • Enforcing lease obligations against original tenants and guarantors;
  • Disclaimer of the lease by a liquidator and its affect on original tenants, subtenants and guarantors;
  • Forfeiture of the lease including, where necessary, obtaining the permission of the court;
  • Pre-pack administrations;
  • Challenging a Company Voluntary Arrangement (CVA) or an Individual Voluntary Arrangement (IVA);
  • Mitigating rates liability.

We regularly advise our landlord clients on the above issues with a view to achieving the optimum commercial outcome.

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We also provide support to tenants and insolvency practitioners in relation to the issues arising from the tenant’s occupational property.

To discuss your tenant insolvency matter please contact one of our property dispute and commercial tenant insolvency solicitors on 01895 201759 or contact us via the enquiry form at the top of this page.

Please note: our legal team are unable to provide legal advice without charge. We will provide you with a pricing proposal at the outset and we usually require monies on account before commencing work.

IBB Solitors Nominated For 2 Solicitors Journal Awards.


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