Padder Lease Protection: Distraint path
What to know before you seize and sell a tenant's assets to recover arrears.
Use this page if you're considering distraint (also called distress) while the tenant is still in the premises.
What to know first
Padder Lease Protection pays once the lease is formally terminated. Distraint is only available while the lease is still in place and the tenant occupies the premises, so distraint on its own doesn't lead to a reimbursement.
Before you distrain, email underwriting@padder.com with your warranty number. We'll confirm in writing how it affects any request you make later.
If you go ahead
- Use a bailiff and follow your lease and the Commercial Tenancies Act.
- Keep the notice you gave the tenant, the bailiff's report of what was seized and its value, the auction records, and your accounting of how the proceeds and the bailiff and auction costs were applied to the arrears.
- If you later end the lease, follow the Termination steps and send us those records, so what you recovered is applied before we calculate any payment.
Questions? Email underwriting@padder.com with your warranty number.