LL remedies for breach of lease Flashcards
(15 cards)
What damages can be received for breach of lease?
Damages under contract law prinicples
This principle aims to restore the injured party to their original position, as if the breach had not occurred.
What remedies are available to the LL for breach of lease?
- Damages
- Action for debt
- Guarantor
- Rent deposit
- CRAR
- Equitable remedies
What is the time limit for action for debt regarding rent due?
Limited to rent due in six years before issue of proceedings
What are the benefits of an action for debt for tenants?
Gives tenant breathing space and can help preserve relationship
What is a disadvantage of an action for debt?
Court claims can be costly and time consuming
In the case of an assignee tenant, who can be pursued for rent arrears?
Old tenant where there is an AGA or old lease
What can a former tenant do if they are paying the current tenant’s debts?
Apply to be granted a lease
What is rent deposit?
LL can draw on a rent deposit, usually limited to 6 months, if there are arrears - T will then need to top up the deposit after withdrawal
What is the Commercial Rent Arrears Recovery (CRAR)?
Self-help remedy – quicker and cheaper than court
CRAR allows landlords to recover rent arrears without going through the court system.
What conditions must be met to use CRAR?
Must be used where:
* Premises are purely commercial
* Minimum of 7 days principal rent is owed (rent plus VAT and interest only)
* Lease has not been forfeited
What must a landlord do before entering the premises using CRAR?
- Landlord must appoint an enforcement agent who has the required certificate from court or is exempt from needing one
- 7 days’ clear notice must be given of intention to enter premises
- Notice must detail debt, repayment, power being used to enforce, details of enforcement agent
What can an enforcement agent do under CRAR?
Enter and seize goods up to value of debt
The seized goods can be sold to recover the owed rent.
What additional notice must a landlord serve if they intend to sell seized goods?
Further 7 days’ notice must be served
What is specific performance in equitable remedies?
Order to the tenant to do something it has not done
Rarely available
What is an injunction in the context of equitable remedies?
An injunction can prevent unlawful actions by the tenant - e.g if landlord is aware the tenant intends to assign the lease unlawfully
Rare.
