Our solicitors deliver expert lease insolvency related advice for landlords and tenants

Generally, no. When a tenant enters administration, a statutory moratorium prevents landlords from forfeiting the lease without either the administrator's consent or permission from the court. Our forfeiture and possession solicitors can advise on whether court permission might be obtainable in your circumstances. Landlords may still be able to pursue other remedies such as claiming against guarantors or drawing on rent deposits.

In liquidation, rent arrears owed before the liquidation are treated as unsecured debt. The landlord must submit a proof of debt to the liquidator and will receive only a proportionate distribution if funds are available. Rent accruing after liquidation while the liquidator retains the premises may rank as an administration expense giving priority. Our rent and service charge recovery solicitors can advise on maximising your recovery.

A Company Voluntary Arrangement (CVA) can significantly affect landlord rights. CVAs may propose to reduce rent, alter lease terms, or compromise rent arrears. Once approved by the requisite majority of creditors, the CVA binds all unsecured creditors including landlords. Our commercial lease disputes solicitors can advise on challenging a CVA where it unfairly prejudices landlords and on protecting your position through the voting process. Our lease variation solicitors can also assist with documenting any agreed changes.

Lease disclaimer is a statutory power allowing a liquidator or trustee in bankruptcy to disclaim onerous property including leases. Once disclaimed, the lease ends and the tenant is released from future obligations. The landlord becomes an unsecured creditor for losses suffered. Our lease exit options solicitors advise on both making and responding to disclaimer. Former tenants and guarantors under lease guarantor documentation can assist.

Yes, our lease insolvency related advice solicitors actively assist landlords in recovering rent during insolvency. Recovery options depend on the type of insolvency and the timing. Rent accruing during administration while premises are retained may rank as an expense of the administration, giving it priority over other claims. Our rent and service charge recovery team pursues all available avenues and advises on realistic recovery prospects.

Strong landlord-friendly lease drafting can significantly strengthen your position before any insolvency occurs. Key protections our solicitors recommend include robust lease guarantor documentation, rent deposit deeds, personal guarantees from directors, and insolvency-triggered break clauses. We also advise on lease due diligence to identify existing protections in your portfolio.