Covid-19 – Commercial Leases
On 23rd March 2020 the Government announced that as a result of the Coronavirus Bill commercial tenants who are unable to pay their rent because of the pandemic will be protected from the usual channels of eviction. As lots of businesses are being forced to close their doors due to the restricting measures the Government are putting into place many business owners who operate from rented commercial premises are concerned what effect this will have on their business, and also their ability to pay rent to their landlords. This will also cause concern for commercial landlords as many of them will have mortgages on these commercial premises and we understand that the Government are actively monitoring the impact these new changes will have on commercial landlords.
The changes as a result of the Bill are likely to mean that no business will be forced out of their rented commercial accommodation if they miss a payment of rent over the next three months. Instead the Government are encouraging both landlords and tenants to work together during this difficult time to reach a resolution that eases the burden on both business owners and landlords.
For further information please see https://www.gov.uk/government/news/extra-protection-for-businesses-with-ban-on-evictions-for-commercial-tenants-who-miss-rent-payments.
For any commercial landlords or tenants who require assistance please contact our Commercial Dispute Resolution Solicitor, Lauren Smith, on 01922 720333.