Unit C Sovereign Way Flashcards
Talk me through how you agreed a payment plan with the tenant?
- Direct contact with the tenant to ascertain why they were in arrears - tenant informed they were going through a quiet period.
- Advised they will need to enter into a payment arrangement to avoid the landlord exercising their right to forfeit the lease, or instructing enforcement agents to recover the arrears.
- Agreed to pay the arrears over a 12 month period, however the tenant failed to stick to the arrangement.
Talk me through how you agreed a payment plan with the tenant?
- Direct contact with the tenant to ascertain why they were in arrears - tenant informed they were going through a quiet period.
- Advised they will need to enter into a payment arrangement to avoid the landlord exercising their right to forfeit the lease, or instructing enforcement agents to recover the arrears.
- Agreed to pay the arrears over a 12 month period, however the tenant failed to stick to the arrangement.
What was the rent at Sovereign Way and what were the rent arrears?
The principle rent was £6,000 per annum, and the arrears were £3,000.
How did you apply the rules for CRAR?
- At least 7 days rent had fallen due before a certified enforcement agent was instructed
- A notice of enforcement was sent to the tenant providing 7 days notice of intention to take control of goods.
- Tenant entered into a controlled goods agreement to pay the amount over a period of 12 months as initially agreed.
What other options were available to you to recover the arrears?
- Forfeiture of the lease
- Obtaining a CCJ
- Statutory demand
- Recover from rent deposit
Why did you choose to exercise CRAR rather than seeking forfeiture of the lease?
CRAR was seen as the most favourable option because it was relatively quick and inexpensive.
If they forfeited the lease, they would have lost their right to recover the arrears by the use of CRAR and therefore would have had to go through a lengthy court process to recover the amount owed, as well as be liable for any voids costs arising from the property.
Would you still be able to rely on CRAR in the market at the moment?
Yes but more protection is afforded to tenants under the Coronavirus Act 2020 - 276 days rent will need to be due.
What do you understand by a statutory demand?
It is a written demand for payment for rent arrears of at least £750 for a corporate tenant or £5,000 for a indiviudal tenant - failure to pay cold result in insolvency
Can you still rely on a Statutory Demand in todays market?
For non UK companies - yes
For UK companies - no, they will be void.
Why did you not recover the arrears from the deposit?
The deposit was equivalent to 3 months rent, and would have then been required to be topped back up by the tenant under the terms of the lease anyway.
What did you seek to recover under CRAR?
The principle rent only.
What was the rent at Sovereign Way and what were the rent arrears?
The principle rent was £6,000 per annum, and the arrears were £3,000.
How did you apply the rules for CRAR?
- At least 7 days rent had fallen due before a certified enforcement agent was instructed
- A notice of enforcement was sent to the tenant providing 7 days notice of intention to take control of goods.
- Tenant entered into a controlled goods agreement to pay the amount over a period of 12 months as initially agreed.
What other options were available to you to recover the arrears?
- Forfeiture of the lease
- Obtaining a CCJ
- Statutory demand
- Recover from rent deposit
Why did you choose to exercise CRAR rather than seeking forfeiture of the lease?
CRAR was seen as the most favourable option because it was relatively quick and inexpensive.
My client would have lost their right to use CRAR if they forfeited the lease, so they would have to issue court proceedings to recover the debt, while also being responsible for voids costs of an empty property.
