Covid-19 & Commercial Property: Ban on business tenant evictions extended

Ban on business tenant evictions extended ahead of September rent payment quarter date

On 16^th September 2020, the Government announced that the ban on landlords evicting business tenants would be extended until the end of the calendar year.

The ban on a landlord’s usual right to “forfeit” a business lease was introduced as part of a package of measures to assist businesses during the disruption associated with the covid-19 pandemic.

If a suitable right is including in a business tenancy agreement, landlords would ordinarily have the right to evict a tenant by a process known as “forfeiture” by either making a court application or by re-entering the property and changing the locks if a tenant is behind or “in arrears” on their rent.

The announcement is timely as the next traditional rent payment “quarter day” due on 29^th September 2020, which is still used in many business and farming leases, was looming on the horizon and many landlords may have been beginning to make preparations to take action against non-paying tenants.

The Government is urging landlords and tenants to communicate constructively and has issued a non-legally-binding code of practice to assist the landlord and tenant relationship during current time.

A link to the Government’s announcement can be found here and the code of practice can be found here.

In many cases we are seeing landlords working positively with tenants to accommodate the current difficulties by agreeing rent holidays or concessions in consideration for any extension of a current lease or the relinquishing of a break right in both cases re-affirming the commitment to each other.

How Hopkins Solicitors Can Help You

If you are a business tenant not sure about your situation in your business property or about the terms of your lease or you are a landlord unsure of your rights and any restrictions on them at this current time, our team of commercial property and dispute resolution lawyers are here to help with any queries.

Our Commercial Team are located across Nottinghamshire in Mansfield, Sutton, Kirkby and Nottingham. Our offices are Covid secure and our team also have the full capabilities of helping you remotely. Please direct your initial enquiry either to our head office on 01623468468 or use the web enquiry form below and a member of the team will be in touch within 24 hours.