4.4 Business creditors & debtors

Question 1

What leases must be registered at Land reg?

Answer 1

All leases over 7 years

Question 2

What is landlord’s distress now called?

Answer 2

Commercial Rent Arrears Recovery (CRAR)

Question 3

What is Commercial Rent Arrears Recovery (CRAR)

Answer 3

Allows a landlord to instruct bailiffs to seize and sell goods from their tenant’s premises to an equivalent value of the rent arrears
 Without a judgment or Court Order
 Must be completed prior to commencement of insolvency
 Only applies to commercial property

Question 4

Who can surrender a lease?

Answer 4

TiB (NOT Supervisor) has power to disclaim

 Liquidator (NOT Supervisor or Administrator) also has power to disclaim

Question 5

What are the rights of a landlord on insolvency?

Answer 5

 Forfeit lease
 Prove for unpaid rent and damages in the insolvency proceedings
 Claim for future rent but must mitigate loss by re-letting wherever possible
 Give permission to debtor/office holder to assign lease to new tenant