The Commercial Lease Demand Letter is a critical document in commercial property management within England and Wales, typically issued when a tenant has fallen behind on rent payments. This formal communication serves as an important step in the debt recovery process, demonstrating the landlord's attempt to resolve the matter before pursuing legal remedies. The letter must comply with pre-action protocols and relevant legislation, including the Landlord and Tenant Act 1954 and Commercial Rent Arrears Recovery Regulations 2014. It should clearly state the amount owed, payment terms, and potential consequences of non-payment, while maintaining professional tone and legal compliance.
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1. Recipient Details: Full name and address of tenant/debtor, ensuring all details are accurate and complete
2. Property Reference: Clear identification of the leased premises including full address and any relevant property identifiers
3. Lease Details: Reference to the lease agreement including date, parties, and any relevant lease terms
4. Amount Owed: Detailed breakdown of outstanding rent and other charges, with specific amounts and periods
5. Payment History: Summary of missed payments and due dates, showing pattern of default
6. Demand Statement: Clear and unambiguous statement demanding payment of the outstanding amount
7. Payment Terms: Specific deadline for payment and acceptable payment methods, including bank details if appropriate
1. Interest Calculation: Details of statutory interest being claimed on late payments under the Late Payment of Commercial Debts (Interest) Act 1998
2. Previous Correspondence: References to prior communications regarding the debt, particularly relevant in escalated cases
3. Legal Consequences: Warning of potential legal actions if payment is not received, including CRAR or court proceedings
1. Statement of Account: Detailed breakdown of all charges, payments, and current balance
2. Copy of Lease: Relevant excerpts or full copy of the lease agreement showing payment obligations
3. Payment History Schedule: Comprehensive record of payment history showing all payments made and missed
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