If you are a Landlord whose commercial lease has been assigned, you are in danger of losing the right to claim rent arrears, service charge, or other charges due under the lease from a former tenant or guarantor. You must act before 23 December 2022.
If your current tenant is not the original tenant under the lease, you have the benefit of an Authorised Guarantee Agreement (‘AGA’) given by the former tenant, and the lease was granted on or before 1 January 1996, you will need to act imminently to retain your right to claim June quarter arrears from the former tenant or guarantor.
Section 17 of the Landlord and Tenant (Covenants) Act 1995 (‘the Act’) releases a former tenant and any guarantor from liability to pay such charges following the expiry of six months beginning with the date the arrears/charge became due.
To ensure your right is protected, you will need to serve the former tenant and/or guarantor with a section 17 notice within the six-month period. The notice, once served, will not be a demand for payment, but will effectively protect your right to seek payment for those unpaid charge from the former tenant and/or guarantor in the future.
With the June quarter date traditionally falling on 24 June (Midsummer Day), the notice must be served by 23 December 2022 to retain the right to pursue former tenants for the outstanding sums due.
The date the notice must be served by may depend on the rent payment dates in the lease.
If you do not want to risk losing this right or have any questions as to how your position can be protected, please contact a member of our Real Estate Dispute Resolution team.