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Commercial Lease Demand Letter Template for England and Wales

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Key Requirements PROMPT example:

Commercial Lease Demand Letter

"I need to draft a Commercial Lease Demand Letter for my retail tenant who has missed three consecutive monthly rent payments totaling £15,000, with the last payment due on March 1, 2025, and I want to include statutory interest calculations and a 14-day payment deadline."

Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






















Clauses




















Relevant Industries
Relevant Teams
Relevant Roles
Industries

Landlord and Tenant Act 1954: Key legislation governing business tenancies in England and Wales, particularly Part II which deals with security of tenure for business tenants and sets out specific notice requirements and procedures

Law of Property Act 1925: Fundamental legislation establishing basic property law principles and formal requirements for commercial property dealings in England and Wales

Commercial Rent Arrears Recovery (CRAR) Regulations 2014: Regulations detailing the specific procedures for recovering rent arrears and associated notice requirements in commercial tenancies

Civil Procedure Rules: Rules governing civil litigation in England and Wales, including pre-action protocols and debt recovery procedures that must be followed before court action

Late Payment of Commercial Debts (Interest) Act 1998: Legislation allowing creditors to claim statutory interest on late payments and compensation for late payment in commercial transactions

Debt Respite Scheme (Breathing Space) Regulations 2020: Regulations providing statutory protection for debtors, requiring creditors to check if a debtor has breathing space protection before pursuing debt collection

Coronavirus Act 2020: Emergency legislation containing specific provisions regarding commercial rent debt during the COVID-19 pandemic period

Property Law Act 1969: Legislation governing various aspects of property law, particularly regarding notices affecting land and property interests

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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