Countdown begins to commercial property deadline
There have been enough stories written about the impact of covid-19 on business to set enough hearts racing for a lifetime, but it is likely more will come as October approaches.
One of the key protections for commercial tenants, put in place on June 26 in the form of the Corporate Insolvency and Governance Act 2020, is due to come to an end on September 30.
It was one of a number of measures aimed at giving businesses the breathing space and tools to maximise their chance of survival throughout and beyond the pandemic and impacted directly on owners and occupiers of commercial property.
Which means that for landlords and tenants it could well be worth making plans now – to avoid the aforementioned flutters.
“Rather than kick matters into the long grass, it is wise for landlords and tenants to consider how the situation might be managed to achieve a satisfactory outcome for everyone”, “said Emma Thompson, a solicitor with Gloucestershire headquartered legal experts Willans LLP,
“The landscape may look very different for enforcement after September 30.”
She added: “In short, the measures meant a suspension of a landlord’s ability to issue forfeiture proceedings based on non-payment of rent and an increase of the minimum net unpaid rent that must be outstanding before the commercial rent arrears recovery procedure can be utilised.”
The Act also contained further provisions preventing winding-up petitions being presented on or after April 27 this year where they rely on statutory demands served from March 1 to the end of September.
“Although the restrictions have been extended until September 30, 2020, it is important to remember that they are only a temporary measure and that the obligation to pay any arrears will remain when they end,” said Ms Thompson.
To read a fuller explanation of the provisions made available by Government, what they mean for commercial tenants and landlord, and what steps you could take, click here: COVID-19: a commercial property update for landlords & tenants.
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