Rent Arrears and Commercial Property
New laws were made to protect tenants who temporarily could not pay their rent during the disruption to business caused by Covid-19 and the lockdown.
Initially a law was passed meaning a landlord could not repossess a rented property because the tenant has not been able to pay rent between 25th March 2020 and 30th June 2020. This was extended until 30 September 2020 and has been extended again to 31 December 2020. These are temporary measures and do not mean the tenant is being let off paying that rent altogether.
The Government and various major organisations working in commercial property have agreed a code of practice for working through the Covid -19 emergency. Although the code does not have legal force it sets out recommended principles and suggests new arrangements landlords and tenants might adopt.
UK finance who represent the major lenders to commercial property landlords issued a statement of support for commercial landlords. The statement confirmed lenders have used been providing assistance to landlords such as making available new or extended financing, restructuring facilities , providing capital payment holidays and covenant waivers. The help that can be given will be considered by lenders on a case by case basis.
Many landlords and tenants have reached agreements on how they will work together through these difficult times. It is important such agreements are correctly documented. A landlord will not want to give up more concessions than he intended and a tenant will want to know the agreements reached with the landlord can be enforced.
Whether you are a landlord or a tenant and want to know your rights or want help with an agreement relating to rent call us on 01296 318500.