More hope for commercial landlords in reclaiming rent arrears

October 20th 2021

Since the Coronavirus pandemic, commercial landlords have been concerned on whether they are able to successfully pursue their tenants for non-payment of rent under a lease, due to the fact that their tenants have been affected by the pandemic. 

However, in the below recent case of London Trocadero (2015) LLP v Picturehouse Cinemas Ltd [2021] EWHC 2591 (Ch), a summary judgement was granted in favour of London Trocadero, the landlord, in respect of payment of commercial rent arrears by their tenant. This case is one of three cases in which the courts have ruled in favour of the landlord with respect to payment of commercial rent arrears by the tenant and thus offers reassurance for landlords that they can still successfully bring a claim against their tenants for non-payment of rent, even when their tenants have been affected by the pandemic, for example: as they were unable to trade.

Many businesses have been hit hard by the Covid pandemic, especially those operating in the hospitality and entertainment sectors where venues have had to remain closed or have been subject to restrictions. One particular problem for such businesses has been the payment of rent in respect of the premises from which they operate. Of course, this has also caused problems for landlords who may rely on the rent they receive to meet their own obligations

http://www.bailii.org/ew/cases/EWHC/Ch/2021/2591.html