Implications for Landlords - Tenant Insolvency

If a tenant fails to pay the rent due under a lease, the landlord has three options:

-         seize property from the tenant

-         take court action against the tenant

-         forfeit the lease, either by court action or peaceable re-entry

However, if the tenant cannot pay the rent because they are, or may shortly become, insolvent, a landlord’s rights may be restricted by the Insolvency Act 1986.

We can explain the relevant provisions of the Act and any implication that may affect you, as a landlord.

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