Landlord liability post disclaimer of lease

gary-pettit

Landlords have been experiencing a rough time of late with both the introduction of the Commercial Rent Arrears Recovery provisions and court rulings on various issues surrounding landlords and tenants.

It is a common occurrence that a liquidator will disclaim a lease under section 178 Insolvency Act 1986. A disclaimer does not prohibit a landlord pursuing any guarantors (who remain liable) but what about the landlord’s liabilities for business rates? This question formed the basis of the latest reported case from The High Court in Schroder Exempt Property Unit Trust and another v Birmingham City Council [2014] EWHC 2207.Continue reading