Tribunals, Courts and Enforcement Act 2007

Part 3: Enforcement by Taking Control of Goods

Commentary on Sections: Part 3

Section 79: Use of CRAR after end of lease

380.This section deals with the use of CRAR after a lease has ended. The provisions of this section are intended broadly to reflect the current law governing the availability of distress for rent after a lease has ended. Subsection (1) sets out the general rule that, when the lease ends, CRAR will cease to be available. But that is subject to two exceptions.

381.The first exception is set out in subsection (2). This ensures that a landlord who has taken control of goods under CRAR before the lease comes to an end (or under the second exception, below), is not prevented from completing the process by selling those goods.

382.The second exception is set out in subsections (3) and (4) and this is intended to preserve the effect of sections 6 and 7 of the Landlord and Tenant Act 1709 after those provisions are repealed by this Act (see Schedule 14). This exception applies where the tenant remains in occupation after the lease comes to an end. It allows the landlord to use CRAR for no more than six months after the lease has come to an end, provided that the lease was not ended by forfeiture, the landlord and tenant remain the same and, if a new lease has been granted to the tenant, it must be a lease of commercial premises. For this purpose it does not matter whether the new lease of commercial premises is in writing or not because the section only permits the landlord to recover rent due under the expired lease of commercial premises, which must be in writing.

383.Subsection (7) defines when a lease ends for the purposes of this section.