Commercial Leases and Covid-19 update

On 16 June 2021 the Government announced a further extension to the moratorium preventing the forfeiture of commercial leases to 25 March 2022.

The Government has also announced that it is intending to introduce legislation to ringfence certain commercial arrears, particularly focusing on businesses forced to close due to Covid restrictions, which will be subject to a compulsory arbitration scheme. We await further details.

Whilst this may be welcome news for some tenants, both landlords and tenants should be aware that in the absence of any agreement or any changes to the law, rent and other sums due under the lease remain payable. Many of our landlord and tenant clients have managed to reach rent arrangements through sensible and early dialogue. These arrangements should revisited and extended if necessary.

Despite this moratorium there are still opportunities for both landlords and tenants. More information can be found in our paper “Commercial Leases and Covid-19: Risks and Opportunities for Landlords and Tenants” or do contact us directly to discuss your options.