Q&As

The tenant of a 1954 Act protected lease enters into a company voluntary arrangement. The lease is due to expire during the period covered by the CVA, but the CVA does not address the lease renewal process. Can the landlord trigger the lease renewal process by serving a section 25 notice during the period covered by the CVA? If so, must the landlord serve a copy of the notice on the CVA supervisor? Will the CVA affect the level of rent that the landlord is entitled to in the new lease?

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Published on LexisPSL on 01/06/2018

The following Property Q&A provides comprehensive and up to date legal information covering:

  • The tenant of a 1954 Act protected lease enters into a company voluntary arrangement. The lease is due to expire during the period covered by the CVA, but the CVA does not address the lease renewal process. Can the landlord trigger the lease renewal process by serving a section 25 notice during the period covered by the CVA? If so, must the landlord serve a copy of the notice on the CVA supervisor? Will the CVA affect the level of rent that the landlord is entitled to in the new lease?

The tenant of a 1954 Act protected lease enters into a company voluntary arrangement. The lease is due to expire during the period covered by the CVA, but the CVA does not address the lease renewal process. Can the landlord trigger the lease renewal process by serving a section 25 notice during the period covered by the CVA? If so, must the landlord serve a copy of the notice on the CVA supervisor? Will the CVA affect the level of rent that the landlord is entitled to in the new lease?

A company voluntary arrangement (CVA) is a statutory contract between the company and its creditors and is used by a company in financial difficulty to restructure its debts. Accordingly, the specific details of CVA terms will be found in the CVA proposal. We are not privy to the exact terms of the CVA and cannot comment on them. However, its terms should be carefully reviewed to understand the impact it has on any potential lease renewal proceedings. For further information on CVAs generally, see our Practice Notes: Property law aspects of Company Voluntary Arrangements (CVAs) and CVAs—landlord issues and remedies.

While the CVA proposal may not deal with

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