Real Estate Tip of the Week: Protection from forfeiture extended to 30 June 2021

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Real Estate Tip of the Week: Protection from forfeiture extended to 30 June 2021

Published 17 March 2021

The Government has announced that the protection from forfeiture given to relevant business tenants in relation to non-payment of lease sums under s82 of the Coronavirus Act will be extended until 30 June 2021. The temporary restrictions on the exercise of CRAR have also been extended to cover this period.

Any rent arrears accrued during the moratorium period are still deemed payable, and the Government’s position is to support landlords and tenants to agree their own arrangements for paying or writing off rent debts. A voluntary Code of Practice for commercial landlords and tenants was published last year, setting out the best practice for these negotiations.

Whilst landlords are still able to sue for arrears, the Government has suggested that if a significant number of landlords and tenants do not engage with one another or are unable to reach an arrangement in respect of arrears, and this poses a significant risk to employment, then it is prepared to take further steps. No indication is given as to what further steps may be taken, and it will be interesting to see if the Government deems this necessary.

We are able to assist in any negotiations relating to rent arrears, in addition to formally documenting any agreement reached. Further, we are able to provide advice on the remaining remedies available in respect of outstanding arrears.

Authors

Dominic Carr

Dominic Carr

+44(0)161 934 3198

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