Part 3Enforcement by taking control of goods

Chapter 2Rent arrears recovery

Commercial rent arrears recovery

I179Use of CRAR after end of lease

1

When the lease ends, CRAR ceases to be exercisable, with these exceptions.

2

CRAR continues to be exercisable in relation to goods taken control of under it—

a

before the lease ended, or

b

under subsection (3).

3

CRAR continues to be exercisable in relation to rent due and payable before the lease ended, if the conditions in subsection (4) are met.

4

These are the conditions—

a

the lease did not end by forfeiture;

b

not more than 6 months has passed since the day when it ended;

c

the rent was due from the person who was the tenant at the end of the lease;

d

that person remains in possession of any part of the demised premises;

e

any new lease under which that person remains in possession is a lease of commercial premises;

f

the person who was the landlord at the end of the lease remains entitled to the immediate reversion.

5

In deciding whether a person remains in possession under a new lease, section 74(2) (lease to be evidenced in writing) does not apply.

6

In the case of a tenancy by estoppel, the person who was the landlord remains “entitled to the immediate reversion” if the estoppel with regard to the tenancy continues.

7

A lease ends when the tenant ceases to be entitled to possession of the demised premises under the lease together with any continuation of it by operation of an enactment or of a rule of law.