What is a Protective Levy ?

More often than not, commercial tenants can find themselves in financial difficulties with rent, business rates, HMRC and late invoices.

All of these could involve an Enforcement Agent (Bailiff) attending the property and potentially removing goods or forcing the tenant into a position where they will prioritise paying these debts over the rent.

A protective levy is a way of landlords placing a lien on these goods which will prevent other bailiff companies claiming title to these goods down the line.

This is now referred to as a Protective Controlled Goods Agreement (PCGA)

Protective Controlled Goods Agreement

As with a normal CRAR instruction, we will send a Notice of Enforcement to the tenant.

Our Certificated Enforcement Agent will visit the tenant on a pre-arranged date to take control of the goods. on paper.

At this point, it becomes an offence for anyone to interfere with, or dispose of these goods without permission of the landlord or bailiff company.

The tenant can pay instalments directly to the landlord/managing agent or we will manage payment on their behalf.

Should the tenant default we will send them a notice advising them to bring their payments up to date.

If they fail to do so the landlord has all the protection of CRAR. The full rent becomes payable immediately and we will send a bailiff (Enforcement Agent) to collect the outstanding balance in full.

If the tenant cannot or will not pay, the law allows us to remove goods to cover the balance.

What are the Benefits?

• Faster recovery : By Taking Control of Goods at the start of the rent quarter, once rent is defaulted on,  we wont need to send a further 7 day notice
• Preferential Creditor : Bailiffs chasing payments from other creditors will not be able to threaten to remove goods
• Reduces Defaults : Your tenant will be made aware that if they miss a payment, enforcement action could be immediate.

Instruct us

There needs to be 7 days of rent owed for us to be able to attend (This does not have to be overdue)

The fees payable can be paid by the landlord or tenant depending on how you wish to proceed. These fees will be 50% of the statutory fees allowed.