Recovering Rent From Sub-Tenants
This post was written by Siobhan Hayes and Katherine Campbell.
Many landlords use an old remedy to recover unpaid rent from sub-tenants where tenants have gone into default. This is set out in Section 6 of the Law of Distress Amendment Act 1908. The remedy pre-dates the rescue culture intended by administration by nearly a century. Given the increasing number of tenant companies in administration, landlords are asking whether the old Section 6 right survives the moratorium that administration gives to the administrator whilst he tries to restructure or sell the company or its business.
This is an area where there is some legal debate at present. We are of the opinion that landlords can use this remedy but it is untested by case law.
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