As a consequence of the Covid-19 situation the Court has issued an additional Practice Direction to Part 55 of the Civil Procedure Rules (which deals with all residential possession proceedings including those taken by landlords and lenders). This Practice Direction goes much further than the original prohibition on the eviction of residential tenants.
The new Practice Direction stays all possession proceedings and also the enforcement of existing possession orders for a period of 90 days from 26 March 2020, when the Practice Direction came into force. This brings the Court into line with the earlier FCA Guidance that had been issued to regulated lenders.
Please note that there is scope within the Practice Direction for the initial period of the stay to be extended to 30 October 2020 but hopefully that will not be deemed necessary and the existing stay will come to an end after the initial 90 days.
The Practice Direction and the FCA Guidance do not prevent the appointment of Receivers or Administrators and both options remain available to lenders where appropriate.
Our banking litigation and property litigation teams remain on hand to advise on the Practice Direction and the enforcement of loans and tenancy agreements generally
This update is for general purpose and guidance only and does not constitute legal advice. Specific legal advice should be taken before acting on any of the topics covered. No part of this update may be used, reproduced, stored or transmitted in any form, or by any means without the prior permission of Brecher LLP.
