Tenant Insolvency: The Impact on Landlords


Business insolvencies are up 14% year-on-year and predicted to rise higher and personal insolvencies are at a 7-year high – with House of Fraser, BHS, Carillion, Monarch, Maplins, LK Bennett, Patisserie Valerie, HMV to name just a few of the recent corporate insolvencies – there has never been a more pressing need for landlords to be fully aware of the impact of tenant insolvency on their remedies. What options remain for a landlord faced with tenant insolvency, no rental income and potentially a change in occupier? This practical session will concentrate on:

  • Who pays the rent, can it be reduced and what options does the landlord have if none is paid? Trocadero v Shinners
  • What to do if a 3rd party is now using the premises – is forfeiture ever possible, when & how? Re: Atlantic: Innovate Logistics
  • Are guarantors still liable? The impact of differing insolvency regimes: Shaw v Doleman; Beardsley v Yardley; Prudential v Powerhouse
  • Disclaimer and the impact on lease liabilities

Learning Objectives

As a result of watching this video, delegates will:

  • Understand when rent is payable, by whom and when and whether the rent deposit can be used in default
  • Be able to advise the landlord on options for tenant default where an insolvency moratorium is imposed
  • Understand what the landlord can do in the face of a pre-pack and a new occupier
  • Be aware of the potential impact of voluntary arrangements on lease terms and guarantor liability: BHS CVA



Sarah Thompson-Copsey is a former property litigation partner at the City law firm now known as Dentons, handling all types of commercial property problems, but with an emphasis on avoiding & resolving commercial landlord and tenant disputes. Sarah now works as a freelance lecturer, trainer and author and lectures & writes regularly on commercial property topics, as well as providing independent auditing and consulting services for law firms.

Sarah is co-author of Tenants’ Pre-emption Rights: A landlord’s guide to the Landlord and Tenant Act 1987 (Jordans) and Mixed Use and Residential Tenants’ Rights: The Landlord and Tenant Act 1987 and Leasehold Enfranchisement, (Elsevier 2009). She is also on the property consultation board of Practical Law Company and a site editor for the Property Law website at www.propertylawuk.net.

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