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The House of Lords has overturned the Court of Appeal’s 2007 judgment in the brewery case of Scottish & Newcastle Plc v Raguz [2007] EWCA Civ 150 which directly impacts upon landlords regarding rent recovery from former tenants and guarantors and has ensured that common sense prevails.
In order to recover rent arrears from former tenants and/or guarantors appropriate notices under section 17 Landlord and Tenant Act 1985 are required to be served within 6 months of rent payment dates.
The Raguz case related to the dispute of the date from which the six month period ran when rent was subject to review and still to be determined under the provisions of the lease.
The House of Lords concluded that landlords need only serve appropriate section 17 notices within 6 months of the rent review being finalised rather than as the Court of Appeal had suggested, within six months of the rent payment date. The rationale for the decision is that there were no known arrears before the rent review was determined.
By overturning the decision of the Court of Appeal the House of Lords have spared landlords extra administrative costs and ensured an already complex area of law is not further burdened by technicalities.
Contact Us.
If you have any queries or questions about your business tenancy or any other property-related issue, please do not hesitate to contact Michael Pitt within our commercial property team on 0161 785 3500 or email:
michael.pitt@pearson-hinchliffe.co.uk.
Or click here to contact to a specialist property lawyer.
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