We occasionally share below some topical news items which we hope you will find interesting.
August 5th, 2009
Residential Tenancy’s – Charges for Gas, Electricity and Water
Are you a residential tenant, whether short lease or long lease, who’s Landlord provides you with any of the above services?
There are Regulations which govern the amount of “profit” the Landlord can make when passing on such charges to you, the tenant.
There are some cases where the Landlord is overcharging for such supply.
Over a period, the amount of overcharge can become substantial.
If you think you are being overcharged, please feel free to contact us.
Tags: Electricity, Gas, overcharging, Water
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July 10th, 2009
Less well known than it should be, the old right to recover rent from a tenant known as Distraint (also called Distress) has been a very powerful weapon.
Briefly described, it allows the Landlord, through a duly authorised enforcement agent, to enter peaceably premises subject to a lease in respect of which there are current rent arrears. Having entered, the enforcement officer then seizes (with a view to future sale) any goods of the tenant upon those premises.
No court order is required; no particular agreement or wording in the Lease is required. The right of Distraint attaches to all leases by operation of Law.
Importantly, no notice is required to be given to the tenant; surprise is a powerful weapon.
There are limitations:
- Entry cannot be forced
- An authorised agent must be used
- Only goods at the premises in respect of which rent is due may be seized
- The Lease must still be in existence (i.e. not forfeited, surrendered or otherwise terminated) at the date of entry
- The Landlord bears the agent’s fees but these are recoverable from the sale proceeds of goods actually seized
- Only goods owned by the tenant which can be seized; goods on hire purchase or left with the tenant by a third party cannot be taken
Distraint has been a formidable weapon in the armoury of the Landlord with a defaulting tenant for centuries.
Be warned however. The process of distraint is shortly to be abolished and replaced with a new statutory scheme called “Commercial Rent Arrears Recovery” (CRAR) introduced in the Tribunals, Courts and Enforcement Act 2007.
The new regime is not yet in force but it is only a matter of time before it is.
One obvious downside of the new scheme is that notice must be given to the tenant. One upside is that with appropriate applications to the Court, entry maybe forced.
Given that a tenant on notice of intending seizure may well remove the goods, there is a provision whereby application can be made to the Court for permission to reduce the period of notice or even enter without notice.
Landlords of commercial premises, and of course their professional property managers, will need to be aware of the new scheme preferably before it is in force and sensibly will need to have access to solicitors who understand it and can take the appropriate urgent action.
For further information about CRAR, please feel free to contact me.
Tags: commercial premises, crar, distraint, landlord, tenant
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May 3rd, 2009
Now it’s started to rain, the credit card companies want their umbrellas back. Failure to do so may result in eviction and the forced sale of your house.
In sunnier times, before the virtual disappearance of credit; Banks, Building Societies and credit card companies were falling over themselves to lend you money.
Loans, 125% mortgages, 10 times multiple earnings and huge credit card limits were the order of the day.
Now the dark, economic monsoon is raging, if you’re in difficulty making repayments you are at risk of losing your home.
Any creditor is able to take legal action over an unpaid debt which could allow them to seize your house. Sadly many credit card companies have begun to do this. The method used is not new and has been used by creditors frequently.
If you owe money to anybody they are entitled to take court action to recover it. A judgment is obtained. Your creditor can then apply to the court for a charging order to secure the debt. A charging order is very similar to a mortgage.
Although courts are reluctant to enforce these by way of eviction, they will do in the face of persistent delay and refusal to clear the debt.
Take debt advice early.
Tags: credit card, loans, mortgages, rainy days, unpaid debt
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May 2nd, 2009
Many businesses find that regulations can cause frustration and that compliance can be expensive.
The following at least will be known to all of us.
- Health and Safety executive
- Equal Opportunities
- Racism/Ageism/Sexism
- Environmental policies
- Fire regulations
- Business continuity/disaster recovery
- Carbon footprint/trading
- Recycling
A degree of common sense and guidance on policies and their implementation can be good for your business, save you money and enhance your corporate image.
Take advice early.
Tags: regulations
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May 2nd, 2009
It may be time to out manoeuvre the bank
In the present difficult economic climate many businesses are facing increased levels of debt to their bankers.
Some bankers’ primary concern is to improve their own balance sheet which means calling in or reducing your overdraft. This can be crippling even for a well managed and profitable business.
Other banks are willing to support a business over the medium to long term. The market place is in flux with different bankers taking very different approaches.
Every businessman should be aware of the general policy of their own bankers and the factors a bank will consider if it is to maintain or grant lending facilities.
In the current climate any business should be prepared to approach a bank whether existing or new for the facilities it really needs and clearly thought out proposals to service those.
A business which is stretched needs to put in place a plan of action to meet the possibility of its bankers reducing or calling in existing borrowing.
Take advice early.
Tags: business banking
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