Business Tenancies During the Coronavirus (COVID19) Pandemic
The Government has brought into force the Coronavirus Act 2020 which includes provisions relating to business tenancies.
Until 30 June 2020, and this period may be extended, no landlord can exercise a right of forfeiture against a tenant that fails to pay any of the rent due prior to 30 June.
In other words, during this period, the tenant may miss rental payment(s) without fear of losing the premises. The liability for the rent remains- there is no write off of the monies due- so there are still cash flow issues to contend with as between landlord and tenant beyond 30 June (and possibly beyond if the Government extend this period). In these uncertain times, even with the backdrop of the provisions of the Coronavirus Act, it would still be recommended that the landlord and tenant have conversations and look to reach voluntary arrangements about rental payments due imminently. Unless the landlord expressly waives its rights in writing, there will be no deemed waiver on the part of the landlord of its rights enforce a right of re-entry or forfeiture after 30 June 2020.
If you would like to know more about Business Tenancies During the Coronavirus (COVID19) Pandemic please contact Joanne Davies by email: firstname.lastname@example.org or phone: 01543 420059