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Can landlords issue winding up petitions under Cov

Can landlords issue winding up petitions and or take possesion of goods?

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Hello. 

Thanks for your time reading and commenting on this.

A bit confusing what the state of play currently is on this. 

  • Can landlords issue winding up petitions (after issuing statutory demands) on tenants who are unable to pay currently due to Covid etc?
  • Also can landlords take possession of goods contained within said office?

Many thanks in advance.

Sean.

Replies (19)

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By paul.benny
22nd Mar 2021 10:42

Statutory demands and winding up petitions are certainly suspended until the end of this month. If not already done, I would think it likely that the period will be extended. And even there is no extension, court backlogs may mean significant delays.

see https://www.gov.uk/government/news/government-gives-businesses-much-need...

Are you landlord or tenant?

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By I'msorryIhaven'taclue
22nd Mar 2021 10:59

And to answer the second part of your question, the landlord would need a court order to take possession of the office or any of your goods within.

But, in reality, don't be surprised if your office furniture finds its way onto the pavement outside. Think about changing the locks, so that if your landlord or his agents want to enter they'll have to break in, which would give you the trump hand when you call the police on them.

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Hallerud at Easter
By DJKL
22nd Mar 2021 11:10

Up here we have Landlord's Hypothec.

Frankly unless the property is really worth something it is not worth jumping through the required hoops, generally 95% of the time what gets left behind is rubbish that costs the landlord money to offload,at one time we had a massive office in one building crammed with desks etc removed from other properties where they had been left by previous tenants, you usually can't give this stuff away.

https://brodies.com/insights/litigation/landlords-hypothec-worth-a-shot/

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By memyself-eye
22nd Mar 2021 11:27

How do you wind up a tenant?

Not a joke, individuals cannot be 'wound up' (unless the EU bans our beloved vaccine!)

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Replying to memyself-eye:
Lisa Thomas
By Insolvency Practitioner
22nd Mar 2021 11:35

I suspect the tenant is a Limited Company.

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Replying to memyself-eye:
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By paul.benny
22nd Mar 2021 11:38

Are you assuming residential lettings? OP does spell out that the premises are offices.

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Replying to memyself-eye:
Hallerud at Easter
By DJKL
22nd Mar 2021 13:23

Tell them you are doubling their rent, followed by "only joking".

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By SeanGrey
22nd Mar 2021 12:21

Sorry I should have said, commercial tenant

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By SeanGrey
22nd Mar 2021 12:21

Sorry I should have said, commercial tenant

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By Carole Baldwin
22nd Mar 2021 13:08

You can do nothing without a court order and at present you have no chance of getting one. At present they won't hear your case, and when they can you will be facing massive delays of up to 2 years or more.
A tenant is a tenant whether it's a massive company or a little old lady, and essentially the same rules apply.

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By memyself-eye
22nd Mar 2021 13:38

You can issue a winding up petition against the company (if that's what it is)- this won't stop them remaining in occupancy of the premises (for now) but it will scupper their business.

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Replying to memyself-eye:
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By Carole Baldwin
23rd Mar 2021 11:41

With the business scuppered there will be little chance of getting back any rent owed, and, they will hold on to the property as long as they can ensuring you can't get possession to re let it. A case of cutting off your nose to spite your face.

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Replying to Carole Baldwin:
Hallerud at Easter
By DJKL
23rd Mar 2021 12:09

Tactically there may be an edge keeping them in even if no rent forthcoming, if reletting is going to be difficult and once they formally depart the landlord is in the frame to pay rates and water charges, a deal where these remain the responsibility of the insolvent company whilst the tenant is permitted to empty the unit (saves the landlord the time and cost, skips are expensive)may be beneficial to both.

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Replying to DJKL:
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By Carole Baldwin
24th Mar 2021 08:53

Hadn't thought of that. I'd be more inclined to employ a couple of out of work bouncers to go round and "have a chat" with them. Oh for the good old days when these things were so simple to deal with.

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Replying to memyself-eye:
Hallerud at Easter
By DJKL
23rd Mar 2021 12:05

In reality nine times out of ten we do a deal with the tenant, if you have first class quality tenants fair enough, involving courts etc might work, but generally using legal processes to resolve non payment of rent is a waste of money.

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Replying to memyself-eye:
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By SeanGrey
24th Mar 2021 14:23

Winding up petitions are suspended though currently until the end of the month (and this is likely to be extended for another 3-6 months?)

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By SeanGrey
26th Mar 2021 05:11

With the MPs yesterday voting to extend the "emergency provisions in the Coronavirus Act" by 6 months, does this mean that winding up petitions are further suspended for this 6 months period (and possibly even longer thereafter). I.e. and to be absolutely clear, 1) commercial landlords CANNOT issue statutory demands which lead to winding up petitions for another 6 months, and 2) commercial landlords cannot take possession of goods still for another 6 months? Thanks.

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Replying to SeanGrey:
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By paul.benny
26th Mar 2021 08:54

There is no reason to believe that these provisions have not been extended.

We may have to wait until the renewal of the emergency provisions has completed the entire legislative process before it is definitively confirmed on gov.uk.

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Replying to paul.benny:
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By wingman22
26th Mar 2021 09:07

It has been extended until 30 June now.

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