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ARTICLE · 27 JULY 2015

Dear Naushin

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Perplexed by property law? Relax, Associate Naushin Malik is here to answer your most pressing questions...

United KingdomReal Estate and Construction
Naushin Malik
Naushin Malik

Perplexed by property law? Relax, Associate Naushin Malik is here to answer your most pressing questions...

Q  My tenant is in arrears of the yearly rent, insurance rent and service charge rent.  It is now making efforts to pay these sums off (which I am in agreement with) and has recently made a payment towards the service charge rent.  However, for cash flow reasons, I would rather apply the monies towards the insurance rent or the yearly rent.  Can I do that? 

A  Where several instalments of rent are due from a tenant, a tenant is entitled to "appropriate" the rent to a particular instalment under the general law relating to appropriation of debts.  A landlord cannot deprive a tenant of its rights by unilaterally denying that the appropriation is valid or effective.   This principle has been established in a case from 1814 which stated that a debtor can "apply the payment to which account it pleases".  It is essential that an appropriation by the tenant should

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