Q&As

Can a landlord exercise a landlord's break right in a lease during the moratorium when the tenant is in administration?

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Produced in partnership with Helen Galley of XXIV Old Buildings
Published on LexisPSL on 02/05/2019

The following Property Disputes Q&A produced in partnership with Helen Galley of XXIV Old Buildings provides comprehensive and up to date legal information covering:

  • Can a landlord exercise a landlord's break right in a lease during the moratorium when the tenant is in administration?

Can a landlord exercise a landlord's break right in a lease during the moratorium when the tenant is in administration?

The moratorium is set out in paragraph 43 of Schedule B1 to the Insolvency Act 1986 as follows:

‘Moratorium on other legal process

43(1) This paragraph applies to a company in administration.

(2) No step may be taken to enforce security over the company’s property except—

(a) with the consent of the administrator, or

(b) with the permission of the court.

(3) No step may be taken to repossess goods in the company’s possession under a hire-purchase agreement except—

(a) with the consent of the administrator, or

(b) with the permission of the court.

(4) A landlord may not exercise a right of forfeiture by peaceable re-entry in relation to premises let to the company except—

(a) with the consent of the administrator, or

(b) with the permission of the court.

(5) In Scotland, a landlord may not exercise a right of irritancy in relation to premises let to the company except—

(a) with the consent of the administrator, or

(b) with the permission of the court.

(6) No legal process (including legal proceedings, execution, distress and diligence) may be instituted or continued against the company or property of the company except—

(a) with the consent of the administrator, or

(b) with the permission of the

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