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Commercial Landlords

As from 6th April 2014 landlords will no longer be able to use the ancient common law remedy of distrain ie sending in the Bailiffs for unpaid rent.

The new Process is called CRAR (commercial rent arrears recovery process).   This process will involve giving notice to the tenant, something which a landlord has not had to do before.

A landlord will only be able to use this new process where they are owed pure rent, ie the principal rent plus vat on the rent, if it is vatable, plus interest.

NOT COVERED BY CRAR

Landlords will not be able to claim for items which are not pure rent such as service charge, rates, council tax, insurance premiums, repairs and maintenance even if they are defined as rent in the lease.

Claims for unpaid rent on mixed use premises, eg a shop with living accommodation attached, will not be covered under CRAR.

A Landlord will also not be able to use CRAR where the lease is not in writing.


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