Business

Commercial Property Advice

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Whether you're a landlord with a commercial tenant that is insolvent, or a tenant with a landlord that is now insolvent, this is a situation that can cause significant disruption to your business and revenue. This is in addition to the stress and inconvenience that this kind of issue can also cause.

You could also be a business with owned property assets and you want to know what will happen to these if you enter into insolvency.

As specialists in both insolvency and business property, including the area of lease law, our team can help with expert commercial property advice as you navigate this problem, ensuring that you understand your legal position and have all the information you need to make key decisions and move forward.

Get in touch with us today to find out how we can help you with specialist commercial property advice.

What happens if a commercial landlord goes bust?

There are several different types of commercial insolvency proceedings, so a tenant in this situation should ensure that they receive specialist commercial property advice to make sure they can make informed decisions in relation to taking any action.

Usually, the tenant will find out about landlord insolvency when the appointed insolvency practitioner writes to them to inform them about the situation. The tenant will usually be advised that any rent and service payments are to be made to an alternative account until the situation is resolved, but the normal terms of the lease should continue.

However, if the landlord's business is liquidated, the property may need to be sold, or there can often be issues relating to building maintenance and repair in the absence of the landlord. As this can be a very complex area, it's essential to get accurate expert commercial property advice so you can understand your rights and obligations as a tenant in this kind of scenario.

What should landlords do if a commercial tenant becomes insolvent?

This can be a complex area of business law, as the options available to landlords can depend on the specific circumstances involved and the terms of the active lease. It can also be affected by the tenant's insolvency proceedings, such as if they propose a Company Voluntary Arrangement (CVA) to manage their debts to the landlord.

If the commercial tenant goes into administration, then this can delay any claims against the company during the statutory period, as can the company being wound up, either voluntarily or compulsorily.

It's vital for commercial landlords to get expert legal advice in this kind of situation to ensure that they know their legal position and what options are open to them in the specific set of circumstances involved.

The team at Forbes can help. Get in touch to find out more.