Commercial Rent Arrears
SLC Solicitors have developed a team specifically to deal with commercial rent and service charge arrears as we appreciate that not all sites our clients manage will be solely residential. Our team are highly knowledgeable on the differing legislation governing commercial lettings and are able to provide an in-depth, specialist service in all aspects of commercial rent and service charge arrears including distraint, forfeiture and possession proceedings. Working closely with bailiffs and High Court Enforcement Officers the team achieves a high recovery success rate.
Commercial rent and service charge collection legislation is in a state of flux at the moment with many changes being introduced but our team keep abreast of the latest updates to provide the best service.
By way of example in April 2012 the Law of Distress, which currently allows collection of commercial rent and service charge (where it is reserved as rent under the Lease), will be changing to CRAR (Commercial Rent Arrears Recovery). This is the new name for distraint, which will be carried out by "Enforcement Agents", formerly certificated bailiffs.
The new process will be used for commercial premises where there is written evidence of a tenancy and can only be used to recover rent owed in respect of those premises. Service charge, even where it is reserved as rent will not be recoverable using the CRAR process.
If an Enforcement Agent is to be instructed, notice will have to be given to the tenant before enforcement action is taken and enforcement can only take place during "normal trading hours", rather than between sunrise and sunset as it was under the Law of Distress.
After April 2012, commercial service charge will be recovered in the same way as residential service charge, by obtaining a County Court Judgment followed by forfeiture and possession. For any further information in this respect please contact Charlotte Collins.
