Covid-19: Are You Considering a Rent Postponement?
Many businesses are being affected significantly by the Coronavirus (Covid-19) and the restrictions that have been put in place to control its spread. With uncertainty and financial hardship sweeping across the country, we recognise the impact this is having on both Landlords and Tenants.
However, as the duration of the COVID-19 outbreak is as yet unknown, we anticipate Landlords and Tenants will seek to agree some form of Rent Postponement Agreement between themselves, most likely to cover a longer period which will then allow some breathing space for recovery. One of the following Rent Postponement options will have to be agreed between the Landlord and Tenant:
- A reduced rent for a period; or
- Altering payment terms, such as moving from quarterly to monthly rent payments.
When a Landlord and Tenant do reach agreement on some form of postponement, it is important that it should be documented in writing, with reference to the existing lease agreement. We would advise that any Rent Postponement is documented as an agreement which is drafted by specialist Commercial Property Solicitors and is stated as being supplemental to the main lease to avoid any future disputes.
Enoch Evans LLP can not only provide help and guidance to both Landlord and Tenants of Commercial Property during these testing times but can also assist you with drafting the Rent PostponementAgreements.
If you require any advice or assistance in dealing with the issues we have outlined above or more generally with your Commercial Property needs, please contact Parminder Rai by email email@example.com or by telephone 01922 687720.