As mentioned in our previous posting, the new provisions introduced as a result of Covid 19 by the Coronavirus Act 2020, mean that business tenants have now received protection from the landlord’s usual right to take back possession of the premises by forfeiture if the tenant does not pay the rent on time.
This does give some relief for struggling tenants but it should be remembered that although the immediate worry of possible forfeiture of the lease is removed, the obligation to pay the rent and any service charge or other payments under the lease (such as insurance premiums) does not go away and those sums will have to be paid sooner or later. Note too that the protection from forfeiture is only temporary, currently until the 30th June 2020, subject to any extension that may be brought in by the Government nearer to that date.
Many landlords will be anxious to keep their tenants in occupation and to receive rent albeit on some reduced or delayed basis. It is important that any concessions offered by the landlord to a tenant should get prior approval from any landlord’s lender to prevent the landlord falling foul of its banking and mortgage obligations and covenants.
Although a landlord cannot for the time being proceed by way of forfeiture, there are still other remedies available should it be decided not to accept or offer any concessions but to take formal action:
So, whether you are a landlord or a tenant, contact any of our team at Clifton Ingram for advice in these uncertain times.
My family has always used Clifton Ingram to deal with any legal issues and we have always been very happy with the service we received in the past. This time was no different and we will continue to use Clifton Ingram in the future.
I am very satisfied with every aspect of Clifton Ingram and have been using them for the past 15 years
Thanks to both, Alison and Kelly, for all your help throughout the process. The way you dealt with my case was just what I needed in times of stress. I will not hesitate to use you in future for any other matters and I will recommend your firm to anyone that needs it.
As always your service was exemplary. I have the confidence that you deal with matters as if they were your own interests
An excellent service which I have recommended to others