Update for Commercial landlord and tenants

We recently provided an update as to the current position for commercial landlord and tenants in light of COVID 19 here. It has been uncertain as to what was going to happen next after the ban on evictions was due to expire on 30th June 2020.

The Government has now extended the ban until 30th September 2020.  This means no business can be forced out of their premises if they cannot pay their rent during this time.

This extension of time is also applicable to statutory demands and winding up petitions under the Corporate Insolvency and Governance Act 2020 (the Act) which came into force on 26th June 2020. The Act also introduces other reliefs for businesses such as filing obligations at Companies House.  It has been designed to provide breathing spaces for tenant businesses to allow them to plan for a sustainable future.  

The above coincides with a new code of practice that has been published by the Government for all commercial landlord and tenants that have been impacted by the coronavirus pandemic.  

The new code of practice can be found here and it reiterates previous guidance that has been made. The legal position is that tenants remain liable for their obligations under the terms of the lease including payment of rent, unless this has been renegotiated with the landlord.  Tenants who are able to pay their rent therefore should continue to do so, and those who cannot, should communicate and negotiate with their landlord.

The code is voluntary but is designed to offer guidance as to how landlords and tenants should approach payment arrangements.

The focus is on clear communication between landlords and tenants to work amicably together.

Temple Heelis deal with a wide variety of landlord and tenant matters. For a free initial consultation, please contact Laura Bright, Richard Moore or John Sim.