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Local Business Debt & Landlord Rent Recovery

Mark House
Posted by: Mark House Solicitor - Head of Litigation

We help local businesses to recover rent arrears in Chester


PSR Solicitors has recently been instructed by 2 local businesses, 1 in Wrexham and 1 in Shotton, in relation to recovering commercial rent arrears from their let properties.

In the first instance a commercial lease had been taken out on a small property in Wrexham.  The lease was set for 10 years however the tenants simply vacated the property without warning after only 18 months, clearly breaching the terms of their contract with the landlord.

We issued court proceedings against the 2 commercial tenants and, as no response was received, we were awarded judgment against them in the County Court.

We then instructed the High Court Sheriff to trace and serve the relevant paperwork and ultimately we agreed a settlement to recover our client’s lost rent in full, together with costs.

In the second instance a commercial tenant leased a small property in Wrexham to operate as a carpet shop.  Although they remained in the property they had failed to pay rent for 6 months.  This led our client, the landlord, to not only want the rental arrears but to have the property vacated.

No response was received to our initial letter and again we issued court proceedings.  Once judgment was obtained against the tenant we were able to reach an agreement with them whereby they would immediately vacate the property, leave the same in a good state of repair and then to pay the rental arrears over the next 12 months.  At the end of the same we agreed to have the County Court judgment against them removed.

In both instances we provided the landlords with a clear transparent structure for the work we would do set out in 3 separate stages and dependent upon how far along the process we got before we were able to achieve the desired outcome.  This meant that the client was fully aware of all the costs that they would have to pay and also of the timescale that the case would take.  Ultimately, both of our clients in these instances were very satisfied, not only with our procedure but with the positive outcomes we achieved.

Companies are owed tens of millions of dollars in unenforced judgments, research by litigation funder Burford Capital has revealed.

In a survey of more than 500 financiers in the UK, US and Canada, 78% of respondents said their companies are owed at least $10m by judgment debtors, while half said their companies are owed $20m or more.

The research also found that legal costs are deterring businesses from entering disputes in the first place. Over 60% of respondents said their companies had avoided court action because of legal expenses.

Large businesses are particularly reluctant to pursue claims. More than 70% of companies worth at least $10bn in annual revenue said they had avoided legal action because of upfront costs.

The report says: ‘Paying out millions of dollars to pursue a meritorious recovery effort can be a challenge for companies with liquidity issues, but the data show that even companies with plenty of cash are likely to forgo claims due to legal expenses.’


Talk to PSR about the
recovery of rent arrears


We help local businesses and landlords recovery unpaid bills and rent arrears so if you require assistance from a solicitor to assist in any business or landlord and tenant matters such as debt resolution, rent recovery or obtaining vacant possession then please do not hesitate to contact us - Commercial Rent Recovery Solicitors



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