Coronavirus forfeiture extension
A Coronavirus forfeiture extension provides temporary relief for many businesses struggling in the current conditions.
From 29th June the moratorium introduced by s.82 of the Coronavirus Act 2020 prohibiting commercial landlords from exercising their right to forfeit leases for non-payment of rent has been extended to 30 September under The Business Tenancies (Protection from Forfeiture: Relevant Period) (Coronavirus) (England) Regulations 2020.
Further legislation will prevent landlords using Commercial Rent Arrears Recovery unless they are owed 189 days of unpaid rent.
Landlords and tenants are being urged to co-operate and assist each other through these difficult times and those tenants that can pay are encouraged to do so.
Rent payment compromises are likely to become increasingly likely. If these are to be used, we would suggest that it is important to take advice before looking to document the agreement.
Oliver Ray is a solicitor specialising in commercial property law in the Property department at Barker Gotelee Solicitors in Ipswich.