On 6 April 2014 Distress for Rent was replaced by Commercial Rent Arrears Recovery [CRAR].

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CRAR can only apply to solely commercial premises, i.e. a pub with living abode included in the same lease would preclude the Landlord from using CRAR. If the premises are mixed use, then you will need to obtain a County Court Judgment for the debt.

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To undertake this process there must be a valid written lease agreement, and the Landlord can only distrain in respect of pure rent, VAT & interest and not in respect of electric, other service charges, or insurance etc. However, we can assist you with the recovery options available under the terms of the lease.

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There is no need for any court order, although in certain circumstances they can be applied for, but the rent must be at least 7 days in arrears and a regulatory ‘Notice of Enforcement’ must be issued to the defaulting tenant using an enforcement agent, giving at least seven clear days' notice (excluding Sundays and bank holidays).  The Notice provides the tenant with a clear date by which to make payment in full to us.

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If full payment is not received from the Tenant within the timeframe given, or they have requested to pay by instalments, the matter is immediately allocated to one of our Enforcement Agents who will attend the premises with a view to obtaining a Controlled Goods Agreement in lieu of payment in full.

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The Enforcement Agent can attend the premises any day of the week between 06:00 and 21:00, or in the alternative, the tenant’s normal trading hours if they differ.

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All Enforcement Fees are payable by the defaulting tenant and are regulated by a Statutory Instrument.

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If the tenant refuses to enter into a Controlled Goods Agreement or defaults on his payment agreement, then goods may be sold at auction, and the tenant will be given 7 clear days’ notice of sale.

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Commercial Rent Arrears Recovery would not affect a Landlord’s right to Forfeit the Lease.

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CRAR will cease to be exercisable when the lease expires, except for in the following circumstances:
 

• In relation to goods taken control of under it, before the lease ended or if the following conditions are met:
   

• The lease was not ended by forfeiture; not more than 6 months has passed since the end of the lease; rent is due from the person who was the tenant at the end of the lease; that person remains in possession of any part of the demised premises; any new lease under which that person remains in possession is a lease of a commercial premises; and the person who was the Landlord at the end of the lease remains entitled to the intermediate reversion.
   

• Where a superior Landlord has the right to exercise CRAR against its tenant, and there is a sub-lease in place, the superior Landlord may instead serve a notice on the sub-tenant requiring the sub-tenant to pay its rent directly to the superior Landlord, not to its own Landlord. The notice must set out the amount of the arrears owed to the superior Landlord.

 

• Should there be a sub-lease in place, the superior Landlord may serve notice on the sub-tenant requiring them to pay their rent direct to the superior Landlord.  A minimum of 14 days’ notice must be served on the sub-tenant.

Our Team will always be happy to discuss your particular circumstances. We are not ‘one size fits all’. Alternatively, you can simply complete an Instruction Form and email or post this directly to us… we are here to help!

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admin@highcourtsolutions.co.uk or telephone 0300 303 3220