Landlord and tenant issues: How long are you willing to wait to recover possession of your property?

By Nerys Thomas.

Generation rent (generation of young people living in rented accommodation with little immediate chance of becoming home owners due to the high cost of property) is an ever-increasing reality within the UK.  Whilst this is good news for landlords, whether they have one rental property to their name or those with large property portfolios, being a landlord can at times be compared to a costly roller coaster experience, especially when attempting to recover possession of your property.

Fundamentally, no landlord can recover possession of their property without the tenant providing vacant possession or the court ordering for the tenant to vacate.  If the tenant does not leave the property following a court order being obtained, landlords must then apply for a court approved bailiff to undertake an eviction.  All of which can become an expensive and time-consuming situation, where the landlord is usually already aggrieved e.g. unpaid rent.        

The Ministry of Justice published statistics in November 2017 surrounding landlord possession proceedings.  It is pleasing to note from this publication that the actual number of possession claims directed to court are slowly reducing, but those claims which are directed to court have seen the time frames for the matters being addressed marginally increasing.  On average, the Ministry of Justice inform us that it could take 11.4 weeks from the filing of a claim at court to getting a possession order.  This means that if your tenant has fallen into rent arrears and you have served the appropriate notice it will take, on average, just shy of three months from filing your claim at court to the matter being considered by a Judge.  That would potentially be three further months where rent is not being paid.

It is detailed in the Ministry of Justice report that it will take on average 41.2 weeks from the date of issuing a claim at court for possession to actually recovering possession, should a tenant fail to adhere to the court order requiring that he/she vacates, and a court approved bailiff is employed to undertake an eviction.  Once again, if the reason for pursuing possession is rent arrears, this time frame is likely to result in an eye-watering debt owed to the landlord.     

Please note that the Ministry of Justice statistics have been collated across England and Wales, therefore the true situation in your local court may vary depending on the court’s workload.  Nevertheless, the figures are a clear warning for landlords to try and protect themselves where possible.

At CJCH Solicitors, we have the experience and knowledge of providing an all-encompassing service in relation to landlord and tenant matters, whether this is to safeguard the landlord prior to entering into a rental agreement; when disputes have arisen or to recover possession and/or rent arrears through the court process.  Should you wish to discuss your situation further or seek assistance with a dispute, contact Nerys Thomas at disputeresolution@cjch.co.uk or by telephone on 0333 231 6405.

Security of Tenure for Commercial Leases – What does it mean?

Security of Tenure for Commercial Leases

The Landlord and Tenant Act 1954 Part II (‘the Act’) confers security of tenure on business tenants and regulates the manner in which business tenancies can be terminated.

What does this mean? Sam Pearson, our commercial law trainee explains that firstly, a business tenancy will not come to an end at the expiration of a fixed term. Secondly the tenancy cannot be terminated unless the Landlord gives sufficient notice to quit.

The statutory right of renewal can be triggered if either the Landlord gives notice of termination or the Tenant requests a new tenancy. Notices must be prepared and served in the required format and within strict time periods. There are many pitfalls with the notice, drafting and procedure and we strongly recommend seeking professional advice.

A Landlord can only oppose a business tenancy protected by the Act on certain statutory grounds:

  • tenant’s failure to repair.
  • persistent delay in paying rent.
  • substantial breaches of other obligations.
  • offering suitable alternative accommodation.
  • demolition or reconstruction.
  • landlord’s intention to occupy the holding.

Compensation may be payable to the Tenant if the Landlord’s application is successful. If the Landlord’s opposition to a new tenancy fails and new terms are not agreed, then an application to Court will be required. A Judge will set the terms and rent after receiving expert evidence.

On taking a new commercial lease the parties may have agreed that the tenancy will not have any statutory right of renewal. In order to do so the Landlord must serve a notice on the Tenant in the prescribed form. The Tenant must make a formal declaration confirming receipt of the notice and accepting the absence of any statutory right of renewal.

Whether you’re looking to renew a commercial lease, seeking advice on a contested lease renewal or looking to contract out of the Act our experts at CJCH Solicitors are ideally placed to provide you with the right advice to suit your business needs.

Our commercial team are available to assist at commercial@cjch.co.uk, or on 0333 231 6405.