The failure of a tenant occupying a leased property can have far-reaching effects for many others including:-
- The landlord
- Former owners of the leasehold interest that was assigned to the current tenant
- Anyone who provided guarantees at the time of the original lease or in connection with the assignment to the current tenant;
- Any sub-tenants;
- Third parties whose assets are in the possession of the tenant
- Bailiffs seeking to enforce claims.
The rules regulating the claims of the interested parties are not straightforward and may be further complicated depending on the type of insolvency.
Liquidation, receivership, bankruptcy, voluntary arrangement and administration all involve different issues for the landlord. In some circumstances the landlord and other creditors are faced with a moratorium preventing then from taking action to enforce their rights. In others they lose the right to object if they fail to do so within 28 days. This is a complex and regularly-changing area of the law for which specialist advice is needed.
Our property insolvency team has extensive experience of acting for and against failing tenants. We provide a bespoke service to advise you on your rights and negotiate with the relevant insolvency practitioners on your behalf.