What Is A Landlord’s Lien?

What Is A Landlord’s Lien?

Many commercial properties in the United Kingdom come with a Landlord’s Lien Clause; however, an increasing number of business owners don’t quite understand how powerful this clause is.

This clause was put in place to help the landlord in case the tenant doesn’t pay the rent. In other words, this clause provides a sense of security to the landlord and serves as a deterrent for potential defaulters.

According to the clause, in case a tenant fails to pay the rent on time, the landlord can proceed to sell the items in a defined space to compensate for the loss.

The Extent—and Possible Limits

Generally, the clause states that everything within a particular space that is owned by the person renting the space can be sold by the landlord in case the tenant defaults. That is unless a specific clause is drawn out that makes specific items immune to the effect of the lien.

The Landlord’s Lien, however, does not apply to any merchandise items that are not personally owned by the tenant and belong to third party distributors or other workers but are placed within the space defined in the lien.

A Word Of Warning

Even though the law makes the landlord legally liable to sell the tenants possessions, they must first offer a word of warning and an alert about the sale of their items before taking action. This alert acts as a final chance for the tenant to try and either negotiate another solution or pay the outstanding rent.

If the tenant fails to follow through, the landlord is allowed to go ahead and sell what they need to in order to compensate for the missing amount. Many business owners don’t read through the full lease document before signing and miss out the Landlord’s Lien. Not being able to retrieve their equipment from a rental space in the case of premature business closing then comes as a surprise for them.

Need Help Regarding The Landlord’s Lien?

Whether you’re a landlord who would like to exercise the clause or are a business owner who is looking to sign a lease that mentions the clause, we can help. You can directly reach out to the commercial lease lawyers at Wembley Solicitors, in Middlesex, UK, and they will help you take care of your landlord and tenant disputes. You can also reach their team at 020 3417 3700 or email them at info@wembleysolicitors.com.

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