Legal

Protection for Commercial Tenants Extended until 30th September

On the 19th June 2020 the Government announced that the protection from forfeiture for non-payment of rent granted to business tenants under the Coronavirus Act 2020 will be extended until the end of September. The measure which was introduced on the 26th March 2020 was due to expire on the 30th June 2020.

Temporary changes to the Although the CIGB is still making collaboration as both parties deal Commercial Rent Arrears its way through Parliament, the with the financial pressures created by Recovery procedure will equally moratorium is in effect already being tenants being forced to close doors be extended until the 30th September implemented by the courts in advance during lockdown. and landlords will be prevented from utilising this process unless at least 189 days of rent is in arrears. of the bill becoming law given that the Bill is expected to be passed shortly. This approach was confirmed in the recent High Court case of Re: A Company The code encourages tenants to pay in full where they can but also recognises that landlords should provide support

The moratorium on the statutory (Injunction to Restrain Presentation of to those tenants unable to do so. demand/winding-up route is also Petition) [2020] EWHC 1406 (Ch). expected to be extended until the The Government has also now Omari Elcock 30th September per the Corporate published a voluntary Code of Practice Solicitor – Commercial Property Insolvency and Governance Bill (CIGB) for commercial landlords and tenants omari.elcock@cwj.co.uk which is currently being progressed. which encourages transparency and 01689 887875

https://www.gov.uk/government/publications/code-of-practice-for-the-commercial-property-sector

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