What Is an Interim Possession Order (IPO)?
If you’re a commercial landlord dealing with unwanted occupiers, you might wonder how to take back control of your property quickly. One of the most effective legal tools available is an Interim Possession Order (IPO). This article explains how IPOs work and with a recent case where Senior Associate, Charles Grossman and Barrister Howard Lederman, 42Barristers successfully helped a landlord regain possession of their premises.
A Real-Life Case: Landlord Secures an IPO
Both Charles and Howard , represented a commercial landlord who faced a challenging situation. The landlord had forfeited the lease of commercial premises after a tenant failed to pay £340,000 in rent arrears. However, things took a turn when unknown individuals broke back in – not once, but twice.
Faced with repeated trespassing, the landlord had no choice but to seek an Interim Possession Order (IPO) under CPR 55.25 ((Court Procedure Rules) a court procedure for obtaining possession of property to prevent further unauthorised occupation.
What Are the Conditions for an IPO?
To obtain an IPO, landlords must meet the following legal conditions under CPR 55.21:
- The claim must be only for possession against trespassers.
- The landlord must have had an immediate right to possession of the property the entire time the trespassers were in occupation.
- The application must be made within 28 days of discovering the unlawful occupation.
- An IPO cannot be granted if the trespassers had permission from someone with the right to occupy the premises.
What Happened in Court?
The case was complicated because another party (the Assignee) claimed they had taken over the lease 18 months earlier—without the landlord’s knowledge and it also came to light that the Assignee had sub-let the premises to someone else but by the time the case went to Court the Assignee had terminated the sub-tenancy. The Assignee therefore argued at Court that because they had now re-entered the premises and the sub-tenant had moved out an IPO should not be granted because the Assignee had the permission of the original tenant.
However, the court ruled in favour of the landlord because:
- The Assignee had not properly registered the lease transfer with HM Land Registry, meaning they had no legal title. Therefore, the sub-tenant did not have the permission from someone who had an immediate right to possession
- The chain of legal permission was broken when the Assignee vacated the premises, and a sub-tenant went into occupation so the Assignee could no longer rely on the permission from the original tenant that pre-dated the forfeiture.
- The Assignee’s additional legal argument that they could enforce the lease as a trust was rejected because of breaches of commercial contracts that t’he Assignee and original tenant had entered into.
In the end, the landlord was awarded an IPO, allowing them to legally remove the trespassers, and was also approximately £33,000 in legal costs.
Why Should Landlords Consider an IPO?
An IPO can be an excellent option for commercial landlords dealing with unwanted occupiers. Here’s why:
- Quick Process: The first IPO hearing happens within three working days, so action is taken fast.
- Stronger Legal Protection: Breaching an IPO is a criminal offence, meaning police can intervene.
- Financial Benefits: Fast removal of trespassers minimises lost rental income and potential property damage.
Things to Watch Out for When Applying for an IPO
While IPOs can be effective, landlords need to be careful about:
- Whether trespassers had legal permission from someone who had the right to occupy the property. If they did, the IPO could be rejected.
- The risk of legal costs if the application fails. A rejected IPO may result in the landlord being ordered to pay legal fees and possibly damages to the occupier.
