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Heads up landlords...there's a possibility of recovering rent arrears

If you have given a former tenant permission (licence) to assign their lease and the current tenant failed to pay the rent due on 24 June, you may able to recover the rent arrears from the former tenant or their guarantor if you obtained an Authorised Guarantee Agreement (AGA) as part of the licence to assign. ACT NOW as you need to serve a formal notice on that former tenant / guarantor and the expiry date for that notice is usually 23 December 2020, depending upon the terms of the lease. This recovery is not affected by the Government restrictions on recover of rent arrears due to Covid-19. The notice does not itself initiate the rent recovery process, but without the notice, you will not be able to use this route for the June 2020 quarter rent arrears.

Contact our commercial property team on 01689 887887 and send us a copy of your AGA and lease and we can check the position for you.

Although correct at the time of publication, the contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Please contact us for the latest legal position.

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