Business tenancies protection from forfeiture

Protections from forfeiture for non-payment of rent for business tenancies has been extended to 30 September 2020. The Coronavirus Act 2020 (the “Act”) is now in force and brings into force provisions protecting business and residential tenants from eviction.

The Government has announced that it will be extending the restrictions on the ability of landlords to recover rent arrears from tenants.

The key points are as follows:

  • The Government will amend the Coronavirus Act 2020 to extend the moratorium on evictions from 30th June to 30th September, meaning no business will be forced out of their premises if they a miss a payment in the next three months.
  • Further legislation will prevent landlords using Commercial Rent Arrears Recovery unless they are owed 189 days of unpaid rent
  • The Corporate Insolvency and Governance Bill will be amended, extending the temporary ban on the use of statutory demands and winding-up petitions where a company cannot pay its bills due to coronavirus until 30th September
  • This is of particular significance to landlords as the next quarterly rent payment day is this week on 24th June.

The Government is still encouraging tenants to pay rent if they are able to, and to enter into discussions with landlords in order to reach compromise agreements on the rental payments due.

These conversations will become increasingly important over the coming weeks as more premises are allowed to open and businesses seek to get working again.

If you would like further guidance or help with forfeiture for non-payment of rent for business tenancies, please get in touch with James cross

Kitsons Solicitors - James Cross

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Kitsons Solicitors - James Cross

James CrossPartner and Chairman

James is a Partner, Chairman of Kitsons and Head of our Litigation team

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