Appropriation can be an important legal principle for landlords as it reflects the apportionment of moneys where more than one debt is owed. In particular it matters if there are rent arrears of a relatively long period and between arrears a renewal tenancy has been granted. If the landlord decides to then serve a section 8 notice on rent arrears grounds, the question arises as to which payments made were for which tenancy? For example a tenant owes £800. A new tenancy (renewal) is granted and the tenant pays £200.00. Does this £200 appropriate to the previous tenancy or the new tenancy? A similar problem can arise where a tenant moves address with the same landlord leaving arrears at the previous address. When a payment is made, which property is the payment allocated to?
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