In the current economic climate, landlords are having to deal more frequently with tenants who are in administration. Where the administrators of the tenant are using the property for the purposes of the administration, the moratorium on forfeiture and irritancy proceedings that applies in administrations means that the landlords are unlikely to be able to recover the property in order to relet it.
United Kingdom, Insolvency & Restructuring, Litigation, Real Estate, Shepherd and Wedderburn LLP, Unsecured debt, Landlord, Leasehold estate, Liability (financial accounting), Asset forfeiture, Court of Appeal of England & Wales, High Court of Justice (England & Wales)
A recent decision from the High Court has shed some light on the remedies available to landlords under insolvency legislation against tenants who enter into administration. The decision provides useful guidance on the ability of a landlord to exercise its right of forfeiture.
United Kingdom, Insolvency & Restructuring, Litigation, Real Estate, Shepherd and Wedderburn LLP, Retail, Landlord, Leasehold estate, Covenant (law), Consideration, Consent, Asset forfeiture, Law Commission (England and Wales), Insolvency Act 1986 (UK)