Hire Purchase Waiver

Landlords are increasingly being asked to sign "waiver" documents that they have received from a tenant's hire purchase lessor.

This is because goods leased under a hire purchase agreement are not exempt from distress.  If a tenant defaults on rent payments due under its lease, the landlord is entitled to distrain against goods at the property, including any hire purchase goods, in order to discharge the arrears.  A hire purchase lessor must then serve a declaration on the landlord in order to recover the hire purchase goods.
 
Many hire purchase lessors are seeking to shortcut this procedure by asking landlords to sign a "waiver" making the hire purchase goods exempt from distress.