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RECOVERING ARREARS: PURSUING SUBTENANTS
A superior landlord whose tenant is in arrears can serve notice
under section 6 of the Law of Distress Amendment Act 1908
to require a subtenant/lodger to pay its future rent directly
to the superior landlord, until such time as the tenant's
debt is satisfied.
The notice only covers arrears due at the date of its service
and further notices will therefore need to be served if the
landlord wishes to recover subsequent arrears from the subtenant/lodger.
Advantages:
+ Fairly simple procedure.
+ May give immediate cashflow.
Disadvantages:
- Need to serve fresh notices if the tenant's arrears
continue to accrue.
- Notice could act to reduce the tenant's income, possibly
causing the tenant further financial difficulties.
For further information or advice please contact propertylitigation@charlesrussell.co.uk
These notes represent only an outline summary
of relevant principles and detailed advice should always be
sought in particular cases.
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