My landlord wants to kick the company out of the premises because of a proposed Company Voluntary Arrangement


For years landlords have had a protected place in insolvent situations. A landlord has, previously, been allowed to distrain or forfeit a property lease (without a court appearance) and irrespective of whether or not a Company Voluntary Arrangement (CVA) had been proposed - landlords have always been problems in insolvent situations.

This former power of landlords had meant that many possible CVA's were non-starters if there were material arrears of rent due to the landlord.

The new rules - You can now avoid landlord problems - Stop him in his tracks!


  • In the moratorium period no landlord to whom rent is payable may exercise any right of forfeiture by peaceable re-entry in relation to premises let to the company (except with court permission).


  • If the CVA is approved the landlord becomes bound by the agreed CVA proposal.


Landlord tactics:

Because of these new rules landlords can be expected to devise new ways of operating which might include:

  • Taking out debentures for sums of rent arising from time to time.


  • Insisting on higher security bonds when granting leases in the first instance.


If you are considering proposing a Company Voluntary Arrangement for your company and anticipate that the landlord may be difficult contact Purnells for FREE INITIAL ADVICE.