Coronavirus Act 2020
Whilst the Coronavirus Act 2020 is not a complete silver bullet for Tenants looking to manage their cashflow, it is a short term tool for business’ to preserve cash flow. Tenants should however be aware that following the expiry of the moratorium period, the right to forfeit will arise again, unless the period is extended. Where a Tenant has withheld payment of the March and/or June 2020 quarter’s rent without its Landlord’s consent, it would therefore be well advised to open a dialogue with the Landlord before the expiry of the mortarium period in September 2020.
If you are a Tenant contemplating your next steps or a Landlord faced with Tenants asking about their options, please contact our team for advice on next steps. Make an enquiry by calling our Dungannon office on 028 8772 2102 or complete our online enquiry form and we will soon be in touch.
The restrictions imposed by the UK Government to help fight the spread of Coronavirus have no doubt had a severe impact on businesses in the last few months. In order to protect businesses and the economy, the Government introduced provisions under Section 82 of the Coronavirus Act 2020 preventing Landlords from enforcing rights of forfeiture and re-entry by court proceedings, against relevant business Tenants for non-payment of rent during the relevant period. The moratorium on forfeiture will effectively mean that Landlords will not be able to bring a lease to an end where Tenants fail to pay rent for the period between 26 March and 30 September 2020, or such later date as the Government may see fit to ensure adequate protection for businesses. The Government have already extended the initial period from 30 June 2020 to 30 September 2020 and can continue to extend same if they feel it is appropriate. The key features of the legislation are:-
Commercial Tenancies & COVID 19 Coronavirus Act 2020 was last modified: January 28th, 2022 by