Landlords’ remedies on tenant insolvency

When it comes to rent collection we take a look at the options available to a landlord on the following types of tenant insolvency:

• CVA
• Administration
• Liquidation

Please note that the following temporary restrictions are in place until 31 December 2020 (which may be extended further), which further limit the options available:

• a moratorium on forfeiture of commercial leases for non-payment of rent;
• a restriction on the use of Commercial Rent Arrears Recovery (CRAR) unless there is:
  • 276 days' rent in arrear where the notice of enforcement is given on or before 24 December 2020; and
  • 366 days' rent in arrear where the notice of enforcement is given on or after 25 December 2020;
• a ban on the use of statutory demands as the basis of a winding up petition; and
• measures preventing winding up petitions being presented and winding up orders being made unless it can be shown that COVID-19 has not had a financial effect on the company (or, even if it has, that the relevant ground for winding up would have been satisfied anyway).