Padder Lease Protection — Reimbursement Centre

1) Day 1: Tenant default occurs when full rent isn’t paid by the lease due date and no repayment agreement was in place before that date.
2) Before notifying Padder: Make a documented effort to resolve the balance directly with the tenant.
3) Notify Padder (Day 16): If unresolved, complete the Tenant Default Notification Form within 16 days of the payment’s original due date (or the period specified in the lease). Select Termination as the planned remedial action.
4) Padder support: Padder will work with you and the tenant to explore repayment options, facilitate communication, and document outcomes. If resolution is not possible, Padder will communicate the appropriate next steps based on the remedial action plan identified.
5) Serve termination notice: Issue notice per lease terms and statutory requirements.
6) Submit Initial Reimbursement Request: Within 15 days serving notice, request reimbursement for unpaid rent up to the termination date.
7) Regain possession: Reclaim the property after the notice period ends, following legal procedures.
8) Mitigate losses: Attempt to re-let the property and maintain evidence of reasonable mitigation efforts (e.g., marketing for re-letting).
9) Submit Final Reimbursement Request: Covers legal fees, vacancy, and re-leasing costs and must be submitted within the earlier of (i) re-renting the property to a new tenant or (ii) 90 calendar days from regaining possession of the property.

1) Day 1: Tenant default occurs when full rent isn’t paid by the lease due date and no repayment agreement was in place before that date.
2) Before notifying Padder: Make a documented effort to resolve the balance directly with the tenant.
3) Notify Padder (Day 16): If unresolved, complete the Tenant Default Notification Form within 16 days of the payment’s original due date (or the period specified in the lease). Select Distraint as the planned remedial action.
4) Padder support: Padder will work with you and the tenant to explore repayment options, facilitate communication, and document outcomes. If resolution is not possible, Padder will communicate the appropriate next steps based on the remedial action plan identified.
• Important note: Distraint must be initiated while the lease is active and the tenant occupies the premises.
5) Initiate distraint: Seize tenant assets with a bailiff’s assistance in compliance with lease and statutory requirements.
6) Sell assets at auction: Apply proceeds to arrears and deduct allowable costs (e.g., bailiff fees, auction expenses).
7) Submit Comprehensive Reimbursement Request (Initial + Final): Covers remaining arrears, legal fees, vacancy, and re-leasing costs and must be submitted within 30 days of auction completion.

1) Day 1: Tenant default occurs when full rent isn’t paid by the lease due date and no repayment agreement was in place before that date.
2) Before notifying Padder: Make a documented effort to resolve the balance directly with the tenant.
3) Notify Padder (Day 16): If unresolved, complete the Tenant Default Notification Form within 16 days of the payment’s original due date (or the period specified in the lease). Select Suing for Unpaid Rent/Damages as the planned remedial action.
4) Padder support: Padder will work with you and the tenant to explore repayment options, facilitate communication, and document outcomes. If resolution is not possible, Padder will communicate the appropriate next steps based on the remedial action plan identified.
• Important note: Termination required: You must initiate termination to end the lease and stop the tenant’s rent obligations before pursuing legal action for unpaid rent or damages. If you keep the lease active while seeking legal action for overdue payments and damages, the Padder guarantee will be void and will not cover amounts within the protection limits.
5) Serve termination notice: Terminate the lease before initiating legal proceedings.
6) Submit Initial Reimbursement Request: Within 15 days serving notice, request reimbursement for unpaid rent up to the termination date.
7) Obtain legal resolution: Secure a court judgment, settlement, or binding resolution. Initial reimbursement(s) may be adjusted based on the final outcome to prevent duplication.
8) Regain possession + mitigate: Take back the property after legal proceedings, actively re-let to minimize losses, and maintain evidence of reasonable mitigation efforts (e.g., marketing for re-letting).
9) Submit Final Reimbursement Request: Covers legal fees, vacancy, and re-leasing costs and must be submitted within the earlier of (i) re-renting the property to a new tenant or (ii) 90 calendar days from regaining possession of the property.

1) Day 1: Tenant default occurs when full rent isn’t paid by the lease due date and no repayment agreement was in place before that date.
2) Before notifying Padder: Make a documented effort to resolve the balance directly with the tenant.
3) Notify Padder (Day 16): If unresolved, complete the Tenant Default Notification Form within 16 days of the payment’s original due date (or the period specified in the lease). Select Accelerating Rent Payments as the planned remedial action.
4) Padder support: Padder will work with you and the tenant to explore repayment options, facilitate communication, and document outcomes. If resolution is not possible, Padder will communicate the appropriate next steps based on the remedial action plan identified.
• Important note: Rent acceleration typically ends upon termination unless the lease explicitly allows it. If you invoke lease clauses to demand the full remaining rent balance, you must start termination to end the lease, following lease terms and legal requirements.
• Coverage note: Padder will only cover tenant liabilities including rental income arrears up to the termination date. Any remaining balance under the acceleration clause must be recovered through your own collections and mitigation efforts. Protection limits for legal fees and vacancy/re-leasing costs remain valid up to the specified amounts in the protection limits.
• If you demand the full rent balance without terminating the lease: The Padder guarantee will be void and will not cover any amounts within the protection limits.
5) Follow the Termination steps: Serve termination notice → submit initial reimbursement request → regain possession → attempt to re-let → submit final reimbursement request within the Termination timelines above.

1) Day 1: Default occurs when full rent isn’t paid by the lease due date and no repayment agreement was in place before that date.
2) Before notifying Padder: Make a documented effort to resolve the balance directly with the tenant.
3) Notify Padder (by Day 16): Submit the Tenant Default Notification Form within 16 days of the original due date (or the period in the lease) and select Tenant Bankruptcy or Insolvency as the remedial action.
4) Padder support + bankruptcy notice: Padder will review the situation with you and the tenant, then confirm next steps. If the tenant has filed, an automatic stay may restrict enforcement actions without court/trustee approval.
5) File proof of claim: Submit a claim with the trustee for pre-filing arrears, post-filing rent, and damages.
6) Initial reimbursement (pre-filing rent): May cover up to 6 months of pre-filing rental income losses. Submit within 15 days of filing your proof of claim.
7) Confirm lease outcome: The lease may be terminated/disclaimed, assigned, or continued.
8) Final reimbursement:
• If terminated: Regain possession, attempt to re-let, and document mitigation. Submit within the earlier of (i) re-renting or (ii) 90 days from regaining possession.
• If continued: Honour the lease and submit within 30 days of the bankruptcy proceedings concluding.