Final Extension on the Protection from Eviction for Commercial Tenants


As noted previously, the Coronavirus Act 2020 (CA 2020) came into force on 26 March 2020, passed as an emergency measure in response to the spread of the 2019 novel coronavirus disease (COVID-19) which materially impacted the ability of landlords to recover possession.

We have covered this on our previous articles here and here.

The Government recently provided the following updates for commercial Landlords and Tenants.

  1. A final extension from eviction and forfeiture of leases for non-payment of rent to 31st March 2021 (s82(1));
  2. No conduct by or on behalf of a landlord is to be regarded as waiving their right of re-entry or forfeiture for non-payment of rent, unless the landlord gives an express waiver in writing (s82(2))

By virtue of the time extension under CA 2020, it also:

  1. Suspends the use of CSAR (commercial rent arrears recovery) until 31st March 2021;
  2. Suspends the use of statutory demands and winding up petitions for Companies (although not for individuals or sole traders) on the grounds of being unable to pay due to covid-19 to 31 March 2021;

The Government has stated that this will be the final extension and should allow landlords and tenants “to come to an agreement on unpaid rent”.

For any further information or advice regarding the above please contact either:

Dan Moan in our Real Estate & Projects team; Neil Lawlor in our Housing Management & Property Litigation team; or Robert Edge and Ann Dixon in our Debt Recovery team.

 

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