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Commercial Rent Arrears Demand

A completed demand for £18,600 commercial rent arrears with a payment plan, interest calculation and reservation of remedies.

Jurisdiction: England and Wales - completed fictional worked example

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Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

# COMMERCIAL RENT ARREARS DEMAND

Date: 10 May 2033

Parties: Mara Ellison and Cedar Quay Retail Ltd

## 1. Purpose and parties

Mara Ellison, landlord of Unit 4, Cedar Quay, Liverpool L3 1BP, demands arrears from Cedar Quay Retail Ltd under the 1 January 2030 commercial lease. The tenant remains in occupation and the lease reserves rent monthly in advance on the first day; this letter is a demand and is not a notice forfeiting the lease.

## 2. Facts, scope and terms

The ledger shows unpaid basic rent of £6,200 for March, £6,200 for April and £6,200 for May 2033, totalling £18,600. The March and April invoices were sent on 20 February and 20 March; the May invoice was sent on 20 April. No credit, payment or agreed set-off is recorded.

## 3. Process and responsibilities

The lease permits interest at 4% per annum on overdue rent after seven days. Calculated simply to 10 May, March's £6,200 for 63 days is £42.74, April's for 32 days is £21.79, and May's for 2 days is £1.36, totalling £65.89. The full balance accrues £2.04 per day (£18,600 × 4% ÷ 365, rounded to the nearest penny) while Mara preserves the contractual calculation method.

## 4. Evidence, records and safeguards

Cedar Quay must pay £18,665.89 by 17 May 2033 to clear the stated balance and interest, or contact Mara by 15 May with bank evidence and a signed proposal. A proposed plan of £6,221.96 on 17 May, £6,221.96 on 17 June and £6,221.97 on 17 July covers £18,665.89; it is offered only if accepted in writing, with further interest accruing until each payment.

## 5. Review, escalation and outcome

Payment must be made to the lease account ending 4421, quoting CQ-04. Mara will issue a receipt and reconcile the ledger. The tenant must not deduct repairs, insurance or alleged losses from rent without a lawful contractual basis or written agreement, and should send any genuine dispute with supporting documents by 15 May.

## 6. Reservations and practical protections

If payment or an agreed plan is not received, Mara may pursue debt recovery, interest, costs and any remedies permitted by the lease and law, subject to applicable restrictions on commercial rent enforcement. Acceptance of a part payment does not waive the balance, breach or future remedies; Mara will consider a written proposal in good faith.

## 7. England and Wales law and completion

This completed fictional demand is dated 10 May 2033 and governed by England and Wales law. It preserves both parties' rights, does not itself terminate the lease, and asks the tenant to preserve invoices, payment records and correspondence. Mara will send any formal statutory notice separately if required and recommends independent legal advice.

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