Statutory demands for property disputes lawyers

Copyright © 2024 LexisNexis

This Overview points out the key areas for property disputes lawyers dealing with statutory demands, and indicates where to find information. For a general introduction to statutory demands, see Practice Note: Statutory demands for property disputes lawyers.

What is a statutory demand?

A statutory demand is a formal demand for payment of a debt which is served by a creditor on its debtor (it is not a court process and it does not need to be issued at court).

Under the Insolvency Act 1986 (IA 1986), a statutory demand can only be served on:

  1. •

    an individual if the debtor owes a liquidated and unsecured debt exceeding the bankruptcy minimum threshold (the bankruptcy level) of £5,000 and that debt is not disputed, or there is no cross or counterclaim which equals or exceeds the debt

  2. •

    a company if the company owes at least £750

Prior to serving a statutory demand, the landlord should check that the tenant is not already subject to an insolvency regime which would prevent a demand being served. Examples include the free-standing moratorium applicable to

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Property Disputes News

MHCLG announces leasehold reforms for 2025 – implementation of LFRA 2024 and modernisation of commonhold

The Ministry of Housing, Communities and Local Government has announced a comprehensive set of leasehold reforms, scheduled for implementation in 2025, aimed at providing increased rights and protections for owners of five million leasehold homes. Key measures include the implementation of the provisions in the Leasehold and Freehold Reform Act 2024 (LFRA 2024) in January 2025, which remove the current ‘two-year-rule’, enabling leaseholders to extend their lease or purchase their freehold without waiting two years after their initial purchase and those which will allow homeowners to take over the management of their building, and ensure more cost transparency and facilitating challenges to unfair service charges.

Property Disputes weekly highlights—21 November 2024

This week's edition of Property Disputes weekly highlights includes: a Court of Appeal case on the court’s jurisdiction to vary a suspended possession order, Upper Tribunal decisions on the impact on limitation of non-payment of an application fee, and the reasonable repair assumption in determining rateable value, and a High Court case regarding adverse possession and trespass. It also includes the launch of the Law Commission’s consultation on the right to renew business tenancies under Part 2 of the Landlord and Tenant Act 1954, as well as the UK Judiciary’s release of the Senior President of Tribunals’ annual report for 2024.

175th Practice Direction update—in force 20 November 2024

The Master of the Rolls and the Parliamentary Under-Secretary of State for Justice have approved the 175th Practice Direction (PD) update to the Civil Procedure Rules (CPR). The amendments come into force on 20 November 2024.  The 175th PD update contains amendments to the online Damages Claims Pilot under CPR PD 51ZB (the DCP), in order to correct a misalignment between the rules in CPR PD 51ZB and the operation of the DCP digital service, concerning the automatic dismissal of claims. CPR PD 51ZB is updated to state so that within four months of the date of issue of the claim, the claimant must not only notify the defendant of the claim and the claim details, but also notify the DCP that they have taken these steps to avoid automatic dismissal of the claim.

Law Commission launches consultation on right to renew business tenancies

The Law Commission has launched a consultation to examine how the right to renew business tenancies under Part 2 of the Landlord and Tenant Act 1954 (LTA 1954) functions and whether it meets the needs of business tenants and landlords. The consultation seeks to assess the efficacy of the current ‘contracting out’ model and explore alternative models, including mandatory security, the abolition of security of tenure, and a ‘contracting-in’ approach. It also examines which types of business tenancies should benefit from security of tenure. The consultation closes on 19 February 2025, with a second consultation paper expected to follow based on the responses received.

View Property Disputes by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Insolvency of freeholder landlord—issues for tenant

Insolvency of freeholder landlord—issues for tenantWhat are the issues for a tenant if the freeholder landlord becomes insolvent? This Practice Note covers who the rent will become payable to and the position of the rent deposit, what happens when the landlord breaches covenants in the lease, and

Is it possible for a mortgagee in possession to grant an option to purchase? And is a court order

Is it possible for a mortgagee in possession to grant an option to purchase? And is a court order necessary for a mortgagee to exercise their right to grant an agricultural or occupational lease to a tenant for a maximum of 50 years under section 99 of the Law of Property Act 1925?Mortgagee’s power

A leaseholder company was dissolved, and the property and rights vested in it passed to the Crown (bona

A leaseholder company was dissolved, and the property and rights vested in it passed to the Crown (bona vacantia). In reference to this: (1) Can the landlord claim possession of the leased property and if so, how?; and (2) can the landlord claim money owed to it under the lease, and if so how and

Disclaimer of a lease-impact on landlords, tenants and third parties

Disclaimer of a lease-impact on landlords, tenants and third partiesThis Practice Note covers what happens to a lease on disclaimer, the impact on landlords, tenants, sub-tenants, former tenants and guarantors, and the effect of a vesting order.Ending the tenant’s interest in the leaseA liquidator
Insolvency of freeholder landlord—issues for tenant

Insolvency of freeholder landlord—issues for tenant

Insolvency of freeholder landlord—issues for tenantWhat are the issues for a tenant if the freeholder landlord becomes insolvent? This Practice Note covers who the rent will become payable to and the position of the rent deposit, what happens when the landlord breaches covenants in the lease, and

Is it possible for a mortgagee in possession to grant an option to purchase? And is a court order

Is it possible for a mortgagee in possession to grant an option to purchase? And is a court order

Is it possible for a mortgagee in possession to grant an option to purchase? And is a court order necessary for a mortgagee to exercise their right to grant an agricultural or occupational lease to a tenant for a maximum of 50 years under section 99 of the Law of Property Act 1925?Mortgagee’s power

A leaseholder company was dissolved, and the property and rights vested in it passed to the Crown (bona

A leaseholder company was dissolved, and the property and rights vested in it passed to the Crown (bona

A leaseholder company was dissolved, and the property and rights vested in it passed to the Crown (bona vacantia). In reference to this: (1) Can the landlord claim possession of the leased property and if so, how?; and (2) can the landlord claim money owed to it under the lease, and if so how and

Disclaimer of a lease-impact on landlords, tenants and third parties

Disclaimer of a lease-impact on landlords, tenants and third parties

Disclaimer of a lease-impact on landlords, tenants and third partiesThis Practice Note covers what happens to a lease on disclaimer, the impact on landlords, tenants, sub-tenants, former tenants and guarantors, and the effect of a vesting order.Ending the tenant’s interest in the leaseA liquidator