Don’t bury your head in the sand if your tenant defaults
Whether you blame Boris or Brexit (or both), our commercial sector is looking more bust than boom just at the moment and tenant defaults are on the up. That’s bad news for commercial landlords. But it will be worse for those that don’t take prompt action when the need arises.
Our ITL library is bursting with past issues ranging from ‘what to look for when inspecting a site’ through to ‘what collateral warranties are and why we need them’ so why not take a look.
For further information please contact Neil Toner, Partner, Head of Real Estate at Devonshires.
For each issue of ITL, we also run a quiz. Our quiz for this issue has now closed, but why not test your knowledge anyway (note: answers are also below!):
Q1: If you wish to pursue a former tenant for payments under a lease, what is the maximum time period that a section 17 notice can go back to recover such arrears?
(a) 6 minutes
(b) 6 months
(c) 6 years
Q2: What does ‘CVA’ stand for?
(a) Creditors Voluntary Arrangement
(b) Commercial Viability Order
(c) Colossal Vanishing Act
Q3: In a CVA, 75% of what ‘group’ have to approve the arrangement for it to proceed:
(a) The combined agreement of all ‘Leavers’ and ‘Remainers’
(b) Those creditors attending the approval meeting that had both tea and biscuits
(c) In value of the debt held by those creditors that vote
(d) The Spice Girls (warning: only select if you didn’t read our ITL issue on Joint Ventures…)
Q1: (b) 6 months
Q2: (a) Creditors Voluntary Arrangement
Q3: (c) In value of the debt held by those creditors that vote