Q&As

A commercial tenant fails to pay a quarter’s rent, then goes into liquidation and the liquidator disclaims the lease. The landlord then relets the property before the next quarter day. Is the landlord still permitted to draw down on a rent deposit deed for the entire unpaid quarter’s rent even though it has relet during the period for which rent was payable, or would the landlord have to return the money to the liquidator to avoid double recovery?

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Published by a LexisNexis Property Disputes expert
Published on: 11 August 2020
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Where rent is payable in advance but the lease ends before the end of the period for which rent is payable, the landlord is entitled to the whole of the rent for that period (see Commentary: Apportionment in respect of time: Hill and Redman's Law of Landlord and Tenant [1807]).

Where a tenant company goes into liquidation and the liquidator disclaims the lease, the rights, interests and Liabilities of the tenant under the lease are terminated, as from the date of disclaimer. If the company was the original

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Jurisdiction(s):
United Kingdom
Key definition:
Double recovery definition
What does Double recovery mean?

A claimant cannot claim for the same loss twice, e.g. sick pay is treated as wages so that it is deducible from damages.

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