July 23, 2010

Good news for landlords – Tenant's administrator liable for rent

An administrator of a company tenant which had gone into administration was found to be liable for rent on premises on the ground that rent was an expense of the administration, as the administrator had used the premises for the benefit of the creditors.

This improvement in the classification of rent is in the pecking order of payments to creditors on a tenants administration means there is a greater chance of the landlord receiving payment. This decision is not limited just to rents, but also any liability incurred under the terms of the lease, for example service charges, insurance rent and liability for tenant's repairs; but only where the premises are used for the benefit of the creditors.

June 3, 2010

Home Information Packs Suspended!

Homeowners are no longer required, from 21 May 2010, to provide a Home Information Pack when selling their property. The HIP suspension does not have retrospective effect; any homes marketed prior to the suspension will still require a HIP and any breaches committed prior to suspension will stand. The suspension does not include Energy Performance Certificates which are still a requirement when selling a property.

The aim is to encourage sellers back to the market and the news has been welcomed by a number of professional associations including the Law Society and the RICS.