The common scenario (and why it confuses people)
A commercial tenant on the lease has sublet the premises to a sub-tenant. The sub-tenant is in occupation and trading. The tenant on the lease stops paying rent.
In many subletting situations, the tenant on the lease may have no goods on site. That means focusing on the tenant’s goods is often not practical. Importantly, a landlord (or certificated enforcement agent acting for them) cannot seize the sub-tenant’s goods just because the main tenant is in arrears.
The statutory route: rent redirection (Section 81)
Where the superior landlord is entitled to exercise CRAR against the tenant on the lease, the legislation provides a structured mechanism to require the sub-tenant to pay rent directly to the superior landlord by written notice.
Relevant legislation
- Tribunals, Courts and Enforcement Act 2007, section 81 (notice to sub-tenant)
- Taking Control of Goods Regulations 2013, Regulation 53(1) (notice takes effect 14 clear days after service)
What this does (plain English)
It redirects the rent stream. It does not end the sub-tenant’s occupation. It does not change their lease. It simply changes who receives rent after the notice becomes effective.
Timeline: how it runs in practice
Day 1: CRAR Notice of Enforcement served on the tenant on the lease
A Notice of Enforcement is served on the tenant named in the lease to establish the arrears position under the head lease and support the statutory route to the sub-tenant.
Day 1: Section 81 notice served on the sub-tenant
A written notice is served requiring the sub-tenant to pay rent to the superior landlord (as permitted by TCEA 2007, s.81).
Days 1–14: the “14 clear days” effective period
The Section 81 notice takes effect 14 clear days after service (Regulation 53(1) of the Taking Control of Goods Regulations 2013). During this period, the sub-tenant may continue paying rent to the original tenant without risk of double liability.
Day 15 onwards: rent is paid to the superior landlord
After 14 clear days have elapsed, rent due or becoming due must be paid directly to the superior landlord (not to the original tenant).
If the sub-tenant does not pay: Section 84 escalation
If the sub-tenant fails to pay after the notice takes effect, the position escalates under section 84 of the Tribunals, Courts and Enforcement Act 2007:
- the law treats the sub-tenant as if they were the immediate tenant for recovery purposes;
- the unpaid sums under the notice are treated as rent due directly to the superior landlord; and
- CRAR can then be exercised against the sub-tenant’s goods to recover that amount (limited to the value of the unpaid sums required under the notice).
This step is uncommon in practice because most sub-tenants comply to avoid enforcement action against their own assets.
Example wording for a Section 81 notice (plain English, aligned to “clear days”)
Notice to Sub-Tenant – Rent Payment Direction
We act on behalf of the superior landlord of the property you occupy.
Your landlord (the original tenant) is in rent arrears to the superior landlord.
The law permits the superior landlord to require that rent payable by you is paid directly to them instead.
With effect from 14 clear days after the date of service
of this notice, any rent due or becoming due must be paid directly to the superior landlord and not to the original tenant.
Any rent paid in this way will count as rent properly paid under your agreement and will protect you from paying twice.
This notice does not end or change your right to occupy the premises.
Tip: keep the notice calm, factual, and operational. Most compliance issues arise from unclear dates, unclear payee details, or over-threatening language.
What we need to get started
- Copy of the head lease (or relevant extracts)
- Rent account / ledger showing arrears (rent-only elements clarified)
- Details of the sub-tenant and their rent payment dates
- Confirmation of any insolvency status (if known)
- Payment instructions for the superior landlord (bank details / remittance contact)
What we do
- Confirm eligibility and any restrictions
- Prepare and serve the CRAR Notice of Enforcement to the tenant on the lease
- Prepare and serve the Section 81 notice to the sub-tenant
- Manage the 14 clear day effective period and follow-up communications
- Escalate under section 84 only if non-payment continues after the notice takes effect
Instruct UK Bailiffs
If your commercial tenant has sublet and stopped paying, we can help you follow the correct statutory sequence with clear notices, clean timings, and defensible escalation.
General information only. Always obtain advice on lease interpretation and any insolvency restrictions where relevant.
