A LEGAL firm has warned that hundreds of commercial landlords across Cumbria could be left counting the cost if their tenants go bust.
Experts at Carlisle-based solicitors Cartmell Shepherd say landlords must take steps to protect themselves as underlying weakness in the UK economy continues to subdue occupier demand for commercial property.
Jayne Minihan, an associate at the company, says increasing numbers of tenants are either defaulting on their rent or simply abandoning the premises without warning. Last year about 5,000 firms went bust in the UK – up 1.3 per cent on 2010.
She said: “Landlords need to know what options they have open to them when a tenant defaults.
“Prior to the economic downturn, forfeiture or the threat of forfeiture was usually enough to ensure prompt payment of arrears. However, in a fragile market it can take much longer to find a new tenant and there is no guarantee that a landlord will secure the same rent.”
Jayne and her colleague Stephanie Johnson are holding a seminar in Carlisle aimed at providing proactive and practical advice to landlords and their agents on how to handle tenant default in commercial leases.
“Protect your investment: how to handle tenant default in commercial leases” will be held on November 15 at the Hallmark Hotel, from 5.30pm until 7.30pm.
This article originally appeared on in-cumbria